Ukrop's Settles Lawsuit, Sells Mooretown Rd. Location

By Amber Lester Kennedy Wednesday, November 09, 2011

The Ukrop's Mooretown Road location, shown in this file photo, closed in 2009.

The two companies settled out of court Wednesday, two weeks shy of a trial scheduled to begin Nov. 14. American General Life Insurance also took ownership of the former grocery store’s fixtures, which had been a source of dispute in various court hearings since AGL first filed its $2 million lawsuit in August 2010.

AGL lawyer Andrew Franck said the exact purchase price has not been determined yet, pending appraisal.

Ukrop’s closed its Mooretown Road location Jan. 31, 2009. When the building was being planned, Ukrop’s entered into an operation and easement agreement with the shopping center developer that gave the shopping center owner six months to buy the property if it was closed for 12 consecutive months. The company sold its stores to the Giant-Carlisle division of Ahold USA for $140 million in February 2010.

In July 2010, AGL acquired Williamsburg Market Shopping Center through foreclosure auction and on July 23, 2010, the company notified Ukrop’s of its intent to purchase by certified letter. Only three days before, Ukrop’s had signed a contract with Supermarket Equipment Sales to purchase its fixtures, such as refrigerators, grills and more, for $750,000.

A series of disputes followed, with Ukrop’s arguing AGL missed the deadline to purchase (a judge disagreed, ruling in favor of AGL), then arguing over what would be considered a fixture and most recently, whether AGL should be granted access to the building for an appraisal. Supermarket Equipment Sales was added as a party to the case, which allowed AGL to purchase the fixtures through that company when the case was resolved last week.

The resolution of the case allows Divaris Real Estate, which handles the leasing of the center, to fill the long-empty space. Without an anchor store, Divaris has had to lower rent rates or negotiate month-to-month leases with the remaining store owners. About half of the shopping center is currently empty.

At a Nov. 29, 2010 hearing, CEO Gerald Divaris said his primary objective was to fill the space, but said his company had not identified a prospect. The original Operation and Easement Agreement arranged between the developer and Ukrop’s listed a variety of businesses that wouldn’t be allowed, in order to present the shopping center as a “first-class” retail destination. The list included bowling alleys, movie theaters, skating rinks, hotels, hardware stores, fitness centers, convenience stores, gas stations and more. With Wal-Mart, Lowe’s and Home Depot within a mile of the shopping center, that leaves few options for the spot other than a grocery store.