New York developer buys University Mall
By Richard Mullins
Tampa Tribune
Published: Dec 4, 2014

TAMPA - University Mall is changing hands, again, and this time there's a good chance the Fowler Avenue property could play a much bigger role in the development of next-door University of South Florida.

The deal was confirmed by former Hillsborough County Commissioner Mark Sharpe. The new owner is New York-based RD Management LLC, which operates major malls across the United States, Sharpe said.

"I think it's awesome,” Sharpe said. "What's very clear is the growth movement and exponential opportunity at USF, and at the same time, we have a new mall owner who is deeply committed to this region and to being part of what is happening.”

Sharpe was not familiar with the final purchase price, and paperwork has not yet been filed with the county. Officials with RD Management did not immediately return calls seeking comment. Sharpe said he expects RD Management executives will now go through a research and planning phase that will reposition both the retail elements of the mall, but also open the property to uses by USF and other major institutions that are rapidly expanding nearby.

Rumors of the deal had circulated in real estate circles for several weeks, but broke loose when USF trustees on Thursday approved moving much of its medical education campus from the Fowler Avenue campus into downtown Tampa.

The mall was previously owned by a real estate fund called LSREF2 Clover, which is controlled by the Texas-based private equity giant Lone Star Funds, which still holds a few other parcels in the wider region under different names, including LSREF2 Gator and LSREF Barron.

Other retail entities own parts of University Mall and apparently were not involved in the deal. Dillard's Department Stores Inc. owns its space at the mall, as does Sears Roebuck & Co.

RD Management currently operates more than 200 properties nationwide, including open-air malls, shopping centers and stand-alone department stores, such as Wal-Mart Stores Inc., Target Corp., and Home Depot Inc. In Florida, the company operates retail properties in Fern Park, Gainesville, Ocala and Sanford.

First opened in 1974, University Mall has gone through ups and downs over the last several years, particularly as other, newer malls opened in the region, including International Plaza and the Shops at Wiregrass.

The mall underwent a $10 million renovation in 2008 and for several years, the site was owned by a joint venture between Somera Capital of Santa Barbara and Rockwood Capital of New York.

Though some major brands still operate there, including House of Hoops and Victoria's Secret, many of the mall's retail slots are now occupied by small, discount merchants.

The Dillard's department store space functions as an clearance center for stock from other Dillard's locations in Florida. An anchor space on the western side remains dormant, while some outparcel retailers have closed their doors.

In September 2012, Lone Star Funds purchased the property amid a massive shedding of assets by the Irish-based Anglo Irish Bank Corp., which held the mortgage on the mall. (Anglo at the time also held mortgages on other Tampa malls, including Channelside Bay Plaza.)

Though mall officials hoped a new theater operator would re-open the cinema and help revive the site, in January 2013, the Frank Theaters cinema complex shut down after never having renovated the theaters into a high-tech showcase with robotic seats.

Commercial real estate giant CBRE was brought in as property manager and CBRE officials helped usher in a major new tenant, Studio Movie Grill Holdings LLC. The Texas-based movie chain invested heavily to renovate the dormant movie theater space into a 14-screen, dine-in movie complex with a cocktail lounge and expansive menu, where guests can reserve their seats in advance and waiters bring food to their seats.

Perhaps the mall's most valuable asset has been its location, sitting strategically between I-275 and a pack of fast-growing institutions: University of South Florida, Florida Hospital, Moffit Cancer Center and the James A. Haley Veterans' Hospital.

rmullins@tampatrib.com
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