Most-visited shopping center in Vermont sells for $60M

BOSTON, April 7, 2022 – JLL Capital Markets announced today that it has advised on the $60 million purchase of and arranged $36.27 million in acquisition financing for University Mall, a 617,000-square-foot, grocery- and Target-anchored enclosed regional mall in Burlington, Vermont, that is the No. 1 shopping center in the state.

JLL advised a joint venture between Eastern Real Estate and Taconic Capital on their acquisition of the asset. Additionally, working on behalf of the new owner, JLL secured a non-recourse acquisition loan from HarborOne Bank and Berkshire Bank.

With an estimated 3.9 million visitors per year, University Mall generates more foot traffic than any other shopping center in the state of Vermont. The 96.3-percent-leased mall is the largest enclosed shopping center in the state and is anchored by Hannaford Supermarkets and Target’s first and only store in Vermont. The mall is complimented by a diverse mix that includes JCPenney, Kohl’s, Sears, H&M, Victoria’s Secret, Bath & Body Works and Party City. The new owners announced they are exploring a range of plans to reenergize the property, which was originally constructed in 1979 and last renovated in 2018.

University Mall spans nearly 52 acres at 155 Dorset St. in Burlington less than three miles from four colleges and universities, including the University of Vermont, and both The University of Vermont Medical Center and the Burlington International Airport are within a mile. The property also has excellent visibility from Interstate 89, one of Vermont’s most heavily travelled interstates with average daily traffic counts exceeding 47,000. The property draws from an extended trade area that includes approximately 42 percent of the state’s population and 278,812 residents within a 25-mile radius earning an average annual household income of $105,521.

The JLL Retail Capital Markets team advising the purchaser was led by Senior Managing Directors Dave Monahan and Chris Angelone, Senior Director Cameron Pittman and Managing Director Nat Heald.

“Eastern Real Estate has made a number of savvy regional mall acquisitions over the past few years, and Taconic Capital has a proven track record of intelligent, opportunistic direct real estate investments,” Monahan said. “University Mall is a tremendous addition to their portfolios, offering exceptional upside potential. Eastern and Taconic make an excellent team, and I am excited to see the transformation of University Mall under their ownership.”

The JLL Capital Markets Debt Advisory team included Managing Director Claudia Steeb and Senior Managing Director Brett Paulsrud.

“Obtaining debt that enables Eastern Real Estate and Taconic to pursue their transformation of University Mall was a key factor in selecting the lending group for this opportunity,” Steeb added. “The lenders at HarborOne Bank and Berkshire Bank were flexible in providing terms to meet the needs of the ownership group.”

JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment sales and advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.

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Eastern Real Estate is a national, privately held commercial real estate company with offices in Boston and Santa Barbara. As both an operator and investor, Eastern identifies, develops and manages commercial real estate projects across the United States. Eastern has invested in more than 100 projects across all asset classes and has developed in excess of 15 million square feet, totaling over $4 billion in value. Building on 30 years of partnership, Eastern balances an agile, opportunistic investment posture with unwavering discipline.

Founded in 1999, Taconic is a global institutional investment firm that pursues an event-driven, multi-strategy investment approach. The company has offices in New York, London and Hong Kong with a range of investment capabilities, management talent and geographic reach to capitalize on the changing opportunity set for investors.