CCA Acquisition Co. LLC of Los Angeles, an affiliate of Kornwasser Shopping Center Properties LLC, has purchased The Shops at Fort Union, a 689,000-square-foot shopping center in Midvale. The 60-acre development sold for $142 million, according to Ben Brown of Mountain West Commercial Real Estate, who represented the buyer. Pete Bethea of NKF Capital Markets represented Blackstone-ShopCore, the previous owner.
{mprestriction ids="1,3"}Built in 1989, the shopping center has about 70 tenants, including Walmart, Smith’s and national retailers such as Bed, Bath & Beyond, Dick’s, DSW and Ross. Some of the local retailers in the center are Sweet Tooth Fairy, Waffle Love and Midvale Modern Dentist.
“CCA will continue its proven business plan of working with tenants and the community to increase value by responding to market-driven demand,” said Brown. He said the new owners planned to transform “the property into a place to spend time in addition to a place to shop.”
Kornwasser President Steven Usdan said the Fort Union center was attractive because of its location, within 20 minutes of the airport, downtown and the four Cottonwood Canyons ski resorts. He also cited the demographics of the mid-valley site, with its strong retail sales and limited competition.
Kornwasser has more than two dozen shopping centers in Arizona, California, Idaho, Washington and Oregon, as well as a share in University Crossing Shopping Center in Orem. The company also developed Oquirrh Mountain Marketplace, an 18-acre shopping center in South Jordan.
In October, Blackstone-ShopCore sold Red Rock Commons, a 134,000-square-foot retail center in St. George, for $33.2 million. It was purchased by Pacific Castle of Irvine, California.
Brown said the sale of The Shops at Fort Union reflects the presence of Utah’s strong commercial retail market, which could see his company experience sales of more than $600 million this year.
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