{"id":1004728258,"date":"2024-09-06T12:09:19","date_gmt":"2024-09-06T20:09:19","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004728258"},"modified":"2024-09-06T12:09:21","modified_gmt":"2024-09-06T20:09:21","slug":"centennial-atlas-hill-re-close-major-retail-deal","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/centennial-atlas-hill-re-close-major-retail-deal\/","title":{"rendered":"Centennial, Atlas Hill RE Close Major Retail Deal"},"content":{"rendered":"\n

Centennial and Atlas Hill RE have acquired Annapolis Mall, a super-regional shopping center in Annapolis, Md., within the Greater Washington, D.C., market.<\/p>\n\n\n

\n
\"Centennial<\/a>
Centennial and Atlas Hill RE have acquired Annapolis Mall, a super-regional shopping center in Annapolis, Md. Image courtesy of Annapolis Mall<\/em><\/figcaption><\/figure><\/div>\n\n\n

The property\u2014Maryland\u2019s second-largest mall\u2014adds to Centennial\u2019s nationwide footprint within the asset class.<\/p>\n\n\n\n

The mall is in an affluent, growing trade area with limited competition and the possibility of adding a residential community in the center of Annapolis.<\/p>\n\n\n\n

Waterfall Asset Management and Lincoln Property Co. are joining Centennial and Atlas Hill in the deal.<\/p>\n\n\n\n

Lincoln Property Co. has recently made a strategic investment<\/a> in Centennial’s operating business. The partnership will provide Centennial with the capital and resources it needs to accelerate its national expansion while positioning Lincoln for new mixed-use development opportunities.<\/p>\n\n\n\n

Atlas Hill RE\u2019s head, Sandeep Mathrani, is a prominent player in repositioning prominent super-regional centers to the table. Together, each entity will have a financial stake in the acquisition, and the team will work collaboratively to execute the center\u2019s business plan.<\/p>\n\n\n\n

Macy\u2019s and JCPenney anchor Annapolis Mall, which also houses Apple, The Container Store, Crate & Barrel, Arhaus, Lululemon, Maggiano\u2019s Little Italy, The North Face and Retro Fitness.<\/p>\n\n\n\n

Centennial also announced it had executed leases at the mall for experiential retail concept Dick\u2019s House of Sport and Dave & Busters. Both tenants are expected to open at Annapolis Mall in the winter of 2025.<\/p>\n\n\n\n

Malls have become destinations<\/h2>\n\n\n\n

As many regional malls have failed or are struggling, creating a mix of uses that combine retail, experiential retail, entertainment, and food and beverage concepts has become essential, Todd Monahan, executive vice president & managing director of Wolf Commercial Real Estate\/CORFAC International, Philadelphia, told Commercial Property Executive<\/em>.<\/p>\n\n\n\n

\u201cIt\u2019s critical to create a center that is a destination and offers an experience no other center offers,\u201d he said. \u201cThis is place-making at its finest. Consumers want a place to shop, dine and be entertained, whether it’s bowling, golf, pickleball, fitness or other uses that complement each other and extend the consumer’s stay. With online shopping becoming the norm, regional centers must differentiate themselves and offer more than retail shopping.\u201d<\/p>\n\n\n\n

Alan Hammer, partner at Brach Eichler, told CPE<\/em> that he sees shopping centers or malls in America changing dramatically in the coming years.<\/p>\n\n\n\n

\u201cSuper-regional malls are unique and may continue to survive or prosper in their current forms, provided they are aggressively managed,\u201d Hammer said. \u201cMore typical malls will see the most dramatic changes. I believe it is only natural that portions of the malls will be demolished, and, in their place, multifamily housing will be constructed.\u201d<\/p>\n\n\n\n

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READ ALSO<\/strong>: Retail Owners Gain Leverage<\/a><\/p>\n\n\n\n

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According to Hammer, the residents will have the convenience of shopping and entertainment in their communities, and the retailers, restaurateurs and entertainment providers will have a natural built-in customer base.<\/p>\n\n\n\n

He also expects health-care facilities to be incorporated, having the same advantage as the retail tenants with potential customers onsite, while providing important convenience to the residents.<\/p>\n\n\n\n

Trent Rustan, vice president, Retail Sales & Leasing, Commercial Properties Inc.\/CORFAC International, told CPE<\/em> the Annapolis Mall sale is an example of high-quality brick-and-mortar retail continuing to be a viable investment.<\/p>\n\n\n\n

\u201cDestination locations combined with strong supporting retail and entertainment nodes can provide the synergy needed to continue to lure tourists and shoppers,\u201d Rustan said.<\/p>\n\n\n\n

He explained that where solid marketing and continued adaptation and improvement are part of a property owner\u2019s operational strategy, more nationally branded companies and strong regional credit operators will continue to seek out the comfort of these economic nodes for their new concepts.<\/p>\n\n\n\n

Lisa Christianson, president of Christianson & Co.\/CORFAC International, told CPE<\/em> that well-located malls nationwide are reinventing themselves and upping their game.<\/p>\n\n\n\n

In Edina, Minn., Southdale Center, the first enclosed mall in the country, looks different than it did five years ago. Restoration Hardware, an apartment building, Shake Shack, and a hotel all sit on out parcels of the mall. Lifetime has opened a massive, 204,000-square-foot high-end fitness and co-working space, complete with a resort-style rooftop beach club that opened at the end of 2019 as a new anchor to Southdale.<\/p>\n\n\n\n

Kowalski\u2019s, an upscale local grocery store, opened this year in the former Herberger\u2019s box.<\/p>\n\n\n\n

\u201cSeveral other retailers and entertainment concepts are already open, and a slew of retailers, including Gucci, Moncler, Man Mara and Breitling, are slated to open next year, bringing a new high-end shopping experience to the mall,\u201d she said.<\/p>\n\n\n\n

Super-regional malls are not obsolete<\/h2>\n\n\n\n

Jim Tancredi, principal of LMT Commercial Realty, LLC\/CORFAC International, told CPE<\/em> that the super-regional mall business model has changed significantly recently but has not become obsolete.<\/p>\n\n\n\n

\u201cMany once-thriving malls have suffered a slow death due to the negative influence of online retailers like Amazon and Temu,\u201d Tancredi said.<\/p>\n\n\n\n

He added that the online retail sector is pirating traditional mall business because consumers can shop from the convenience of their homes at significantly lower prices. “As a result, foot traffic is down in the malls, and there is less of a need for retailers to maintain their sticks & bricks presences in these dying retail centers.\u201d<\/p>\n\n\n\n

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LISTEN TO<\/strong>: Retail Always Comes Back\u2014and With New Twists<\/a><\/p>\n\n\n\n

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According to Tancredi, further complicating the business model is the inability of mall owners to refinance current loans at today\u2019s interest rates. He explained that in some cases, owners are strapped with debt well over 100 percent LTV.<\/p>\n\n\n\n

\u201cThey are handing the keys back to the banks instead of restructuring the debt and offering up additional reserves to establish a more acceptable LTV,\u201d Tancredi told CPE<\/em>. He added that while some malls are closing, others are being converted to lifestyle centers or mixed-use projects that include uses like retail shopping, large-scale medical offices\/health-care services, multifamily dwellings, as well as hospitality and entertainment venues.<\/p>\n\n\n\n

Transitioning from a super-regional mall to a lifestyle center or mixed-use project is an expensive redevelopment proposition. Still, once complete, it will generally return the property to profitability, he said.<\/p>\n","protected":false},"excerpt":{"rendered":"

Maryland\u2019s second-largest mall has new owners. <\/p>\n","protected":false},"author":3568,"featured_media":1004728261,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21783,11,21742,21749,1615],"tags":[52163,32838,45077],"class_list":["post-1004728258","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investment","category-midatlantic","category-latest","category-retail","category-washington-dc","tag-centennial","tag-lincoln-property-company","tag-waterfall-asset-management"],"acf":[],"yoast_head":"\nCentennial, Atlas Hill RE Close Major Retail Deal - Commercial Property Executive<\/title>\n<meta name=\"description\" content=\"Centennial and Atlas Hill RE have acquired Annapolis Mall, a super-regional shopping center in Annapolis, Md., within Greater Washington, D.C.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/centennial-atlas-hill-re-close-major-retail-deal\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Centennial, Atlas Hill RE Close Major Retail Deal\" \/>\n<meta property=\"og:description\" content=\"Centennial and Atlas Hill RE have acquired Annapolis Mall, a super-regional shopping center in Annapolis, Md., within Greater Washington, D.C.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/centennial-atlas-hill-re-close-major-retail-deal\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2024-09-06T20:09:19+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-09-06T20:09:21+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/09\/Annapolis-mall-featured.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"802\" \/>\n\t<meta property=\"og:image:height\" content=\"600\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Richard Berger\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/centennial-atlas-hill-re-close-major-retail-deal\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/centennial-atlas-hill-re-close-major-retail-deal\/\",\"name\":\"Centennial, Atlas Hill RE Close Major Retail Deal - Commercial Property Executive\",\"isPartOf\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/centennial-atlas-hill-re-close-major-retail-deal\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/centennial-atlas-hill-re-close-major-retail-deal\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/09\/Annapolis-mall-featured.jpg\",\"datePublished\":\"2024-09-06T20:09:19+00:00\",\"dateModified\":\"2024-09-06T20:09:21+00:00\",\"author\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/6d4c5f1b2f682b3604ad9fe73c19fed7\"},\"description\":\"Centennial and Atlas Hill RE have acquired Annapolis Mall, a super-regional shopping center in Annapolis, Md., within Greater Washington, D.C.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/centennial-atlas-hill-re-close-major-retail-deal\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.commercialsearch.com\/news\/centennial-atlas-hill-re-close-major-retail-deal\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/centennial-atlas-hill-re-close-major-retail-deal\/#primaryimage\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/09\/Annapolis-mall-featured.jpg\",\"contentUrl\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/09\/Annapolis-mall-featured.jpg\",\"width\":802,\"height\":600,\"caption\":\"Centennial and Atlas Hill RE have acquired Annapolis Mall, a super-regional shopping center in Annapolis, Md. 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