Ownership of the Wiregrass Commons Mall recently changed from a Pennsylvania company, which acquired the mall in 2003, to a California management group.
Pennsylvania Real Estate Investment Trust (PREIT) announced last week it had completed the sale of three malls, including Wiregrass Commons Mall, Gadsden Mall and New River Valley Mall in Christiansburg, Virginia, for $66 million. The sale comes with the potential for $3.5 million of additional consideration if certain conditions are met in future years, according to PREIT.
The Inquirer Daily News in Philadelphia reported the malls were sold to California-based Farallon Capital Management. According to the Inquirer, the malls were under contract to sell for $95.4 million but that the final selling price was affected, at least, by the eventual loss of the Hancock Fabrics chain.
Great American Group announced it began going-out-of-business sales for 185 Hancock Fabrics stores on April 1 after the company filed for bankruptcy. Hancock is offering 20 to 50 percent discounts on all merchandise online and in-stores.
While Hancock is going out of business, a Sephora cosmetics store is expected to locate inside JCPenney in Wiregrass Commons Mall in June.
According to PREIT, Wiregrass Commons Mall was an estimated 634,648-square feet when it was acquired in 2003. The mall was built in 1986 and renovated in 2008.
The mall’s stores have been affected by corporations that have closed their stores throughout the years, though some local stores and attractions, such as Purple Penguin Putt & Glow, have opened in the mall in recent years.
Wiregrass Commons Mall general manager Lori Wilcoxon said the announcements by Hancock and Sephora were the latest in changes at the mall as of Monday morning.
“We’ve changed ownership, so we’re working with the new owner under a new direction,” she said.
PREIT stated in a news release that the sale of the malls was part of a plan in 2012 to reshape the company’s portfolio to dispose of non-core properties such as lower-productivity malls.
The company has since sold 13 lower-productivity malls and several power centers and land parcels, generating about $600 million in gross proceeds, according to the news release.
According to its website, Farallon Capital Management is a global institutional asset management firm founded in 1986. The company is headquartered in San Francisco and has offices in London, Singapore, Hong Kong, Tokyo, and São Paulo.
An earlier version of this article incorrectly mentioned that Finish Line was lost at Wiregrass Commons Mall. Finish Line is still located in the mall, according to officials.