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April 01 , 2011

High-profile Addison retail center changes hands

High-profile Addison retail center changes hands

 

Dallas Morning News

File 2004/Staff Photo

A group of investors and developers has purchased the Village on the Parkway on the Dallas North Tollway in Addison. The new owners plan to revamp the retail center, which had lost several tenants and undergone a foreclosure.

By STEVE BROWN

Real Estate Editor

stevebrown@dallasnews.com

Published 01 April 2011 02:40 PM

The Village on the Parkway shopping center on the Dallas North Tollway in Addison has been purchased by a group of investors and developers.

The 28-acre retail center has fallen on hard times with the loss of several tenants and a foreclosure.

But the new owners — The Retail Connection, Lincoln Property Co. and Fidelity Real Estate Group — plan to revamp and replace parts of the 30-year-old shopping center.

“It’s one of the premier commercial tracts in the Dallas-Fort Worth area,” Retail Connection CEO Steve Lieberman said Friday. “The redevelopment potential is as exciting as any property out there.”

The retail center — which was originally anchored by a Sakowitz department store — is now about 60 percent leased. The largest tenant, Bed Bath & Beyond, recently decamped for a location near the Dallas Galleria.

The new owners are already lining up tenants for the project, which has 380,000 square feet of space, said Retail Connection president Alan Shor.

“There are a lot of moving parts we must put in place before starting construction,” Shor said. “We are working with the city of Addison on plans for the project.”

Terms of the purchase were not disclosed.

Lenders headed by Wells Fargo Bank loaned $47 million on Village on the Parkway in 2004, county records show.

The previous owners contemplated a variety of development plans for the property, including adding residential space.

But last September the shopping center fell into foreclosure when the real estate partnership that owned it defaulted on the debt.

Jack Crews of Jones Lang LaSalle negotiated the just-completed sale.

“There was tremendous interest in the property,” Lieberman said. “Everybody saw the potential, and every developer was on top of it.

“We are going to totally reposition this asset and take it to the next level.”

Originally built as Sakowitz Village, the Mediterranean style open-air retail center was just across the street from Prestonwood Town Center shopping mall when it opened its doors. The mall has been torn down and replaced by big box retailers.

Sakowitz — a Houston-based luxury retailer — closed up shop in 1986, and the Addison store sat empty for eight years. In 1989, the Village on the Parkway was foreclosed on by lender Metropolitan Life Insurance.

It has had a series of owners since then, including — for a few years — The Retail Connection.

“We are very familiar with this property and its potential,” Lieberman said.

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