Boyer sells retail portion of The Gateway

The Boyer Co. has sold a huge chunk of The Gateway development to an Illinois-based group of companies.

But both the new and former owners insist that little will change for shoppers, shop owners or Salt Lake City as a result of the sale.

The Boyer Co. said Friday that it has formed a "strategic partnership" with Inland Western Retail Real Estate Trust Inc. to own and manage the retail portion of Phase One of The Gateway. That portion includes the shopping center's 95 stores and restaurants.

Financial details of the transaction were not disclosed.

Inland Western Retail Real Estate Trust is one of several Inland companies that combine to form the fifth-largest shopping center owner in North America. As a combined entity, Inland claims more than 95 million square feet under management, worth in excess of $10 billion.

In Utah, Inland Western also owns The Promenade at Red Cliff in St. George.

The Boyer Co. said it will continue to lease the rest of Phase One of The Gateway and will still own and lease Phase Two and all office buildings.

Both Boyer and Inland spokesman Rick Fox stressed that the change in ownership shouldn't mean big changes at The Gateway. Both emphasized that Boyer will continue to have an interest in The Gateway's success and will continue to invest in and develop the area.

"This is basically a financial transaction," said Jake Boyer, managing partner of The Gateway. "There will be no visible changes. As far as we're concerned, it's business as usual."

Boyer rejected the notion that The Boyer Co. had jettisoned The Gateway or that it wanted to unload the property.

"This deal is good for The Gateway because it infuses even more capital into the Gateway area and the Gateway project," he said. "It enables us to pump more money into the development of the area. We're continuing to develop and bring people to the downtown Salt Lake City area."

Boyer said the money from the transaction will be used to pay down debt and for other obligations. He did not elaborate.

Inland will work in "close partnership" with The Boyer Co., Fox said, and has no immediate plans for changes.

"We're going to continue to operate the shopping center as Boyer started it," Fox said. "We're not going to mess with something that's working so well.

"It's a phenomenal center. It's got wonderful tenants and a wonderful design, and they've done a great job with it, more than just from a development perspective."

When asked how the acquisition might affect The Gateway's relationship to Salt Lake City, Fox said that was one of the reasons for maintaining ties to Boyer.