Sugar House Center, the 17-acre shopping center that took nearly a quarter century to be developed, is once again up for sale.
Owner POB Montgomery, a Dallas-based developer, is asking $27.5 million for the 235,000-square-foot property that is 97 percent occupied by retail tenants.They include ShopKo, Toys "R" Us, Nordstrom Rack, Red Lobster, Training Table, Olive Garden, Taco Bell and a 10-screen Cinemark Theater complex, as well as several smaller tenants.
The only vacant space in the complex is where Barnes & Noble books was located. That store has moved to a new location in The Commons, a retail center located immediately to the north that is being developed by The Boyer Co.
Sugar House Center, bordered by 1100 East, 1300 East, Simpson Avenue and I-80, has been listed with the Salt Lake office of CB Richard Ellis and will be marketed by CB senior associate Kent Christensen and vice president John Jones.
Why sell a nearly fully leased shopping center? Christensen said POB made a seven-year commitment to manage the property when it bought the center out of bankruptcy in 1992, and now that commitment is over.
"It's been a very good property, and with the Boyer development right next to it, it's now even better," said Christensen, who noted that CB has 30 potential buyers -- all from out of state -- who have expressed interest.
"It probably won't be on the market long," he said.
The Sugar House Center sale would likely be the largest retail deal in the area since last year, when Developers Diversified Realty of Cleveland bought all of the Hermes Associates Family Center malls on the Wasatch Front for $300 million.
Sugar House Center was originally developed in 1990 by Clark Financial Corp. and its president Spence Clark after being in the planning stages for 23 years. At the time, it was the first major development in Sugar House since 1965.
But before it was completed the company went into bankruptcy, and it was acquired by POB.
Christensen said the sale should be "invisible" to both tenants and customers regardless of who buys the property. "The leases are already in place, so everything should stay as is. And we are negotiating with a tenant for the Barnes & Noble space."