Marquis Shopping Center Under Contract for Purchase

By Amber Lester Kennedy Thursday, March 17, 2011

Aerial view of the Marquis property.

The developer’s name and the sale price are unknown at this time. The 268,691-square-foot retail center was set to be sold at auction on March 10, but the auction was abruptly cancelled one hour after the scheduled start time. The property was put under contract one day after the scheduled auction, according to CB Richard Ellis, which handled the sale for owner CIT.

“We are pleased that the auction process has identified a buyer for the property,” said Paul Galanis, managing director of CBRE Auction Services, in the press release. “This buyer has an exciting vision for how to successfully complete the development of this property, which will reenergize this institutional-quality shopping center.”

The developer plans to build-out the center, situated on approximately 223 acres at the intersection of Interstate 64 and Route 199, adjacent to Water Country. The center currently includes J.C. Penney, Kohl’s, Best Buy and Dick’s Sporting Goods. It is anchored by a Target, which was not included in the sale.

Doug Johnson, managing director of CBRE Auction Services, said the auction process generated great interest in the property from both national and international buyers.

The developer is the second to put the property under contract since 2009. In December 2009, Atlanta-based Madison Retail LLC entered a purchase agreement with owner CIT, but in August 2010, sent a letter to CIT indicating it planned to drop its option.

The developer will inherit $38 million in debt, owed to the Marquis Community Development Authority, construction companies that performed site work and tenants who paid for some building construction expecting to be repaid.

The Marquis, which opened its first store in October 2007, was originally developed by Premier Properties USA. Premier went bankrupt in 2008, with investor Dominion Capital taking control. When Dominion didn’t make payments, primary lender CIT foreclosed on Dominion and took ownership of the Marquis.

While promoting the auction sale, CB Richard Ellis characterized the Marquis as a “tremendous opportunity” to invest in a well-situated property with great potential to increase the density.