Hartford, Conn. Hutensky Capital Partners said it has acquired City Place Mall, a 350,000-sq.-ft. shopping center in Silver Spring, Md., from an affiliate of Petrie Ross Ventures for $22.8 million in a three-party deal that included a discounted payoff of 100% of the property’s outstanding debt.
An affiliate of the seller will manage and lease the property and lead the redevelopment process.
“We were attracted by the property’s location in the central business district of Silver Spring, a vibrant urban area with proven retail performance,” said Brad Hutensky, HCP’s general partner. “However, like many properties today, the asset was overleveraged. By providing a big chunk of fresh capital, we were able to find a middle ground for settlement that the lender and borrower could agree to. The result is that we now own a debt-free property that can be redeveloped to meet its full potential.”