DLC Sells Spring Valley Marketplace for $59M

(For more retail coverage, click GlobeSt.com/RETAIL.)

SPRING VALLEY, NY-After undertaking a successful expansion and redevelopment of the property that lifted its occupancy rate from 30% to 100%, DLC Management Corp. of Tarrytown has sold the Spring Valley Marketplace here to Long Island-based Millbrook Properties for $58.5 million.

DLC originally purchased the property in July 1999 for $28 million. Shortly thereafter, two of the 320,720-sf shopping center’s anchor tenants declared bankruptcy. That, combined with intense competition from the recently opened three-million-sf Palisades Mall in Nanuet, caused the Spring Valley Marketplace occupancy rate to plummet to 30%, DLC officials say.

DLC later redeveloped the property, increased its size to its current 340,373-sf configuration, and can now boast 100% occupancy.

Among its major national tenants are: Target, Bed Bath & Beyond, Michaels Arts & Crafts, Christmas Tree Shops, TJ Maxx, David’s Bridal, Sleepy’s, Justice for Girls, GameStop, Nine West, Yankee Candle and Catherine’s. Target is the center’s largest tenant at 134,000 sf, followed by Christmas Tree Shops at 49,744 sf, TJ Maxx at 36,011 sf, Bed Bath & Beyond at 35,000 sf and Michaels Arts and Crafts at 25,000 sf.

“The success of Spring Valley Marketplace is a prime example of how DLC stabilizes an underperforming asset, and maximizes its value,” says Adam Ifshin, president of DLC Management. The redevelopment effort and subsequent leasing of the vacant space at the complex infused the local economy with 600 new jobs, company officials add.

DLC officials say the company will utilize profits of the sale to increase its 2007 spending power to more than $600 million for new acquisitions this year.

The company, which currently has a retail portfolio of more than 14 million sf in 23 states, is expected to close on the purchase of a three-asset retail transaction in the next 60 days, according to a company spokesman.