An open-air shopping center that turned around a high-vacancy rate in recent years and sought more tenants offering entertainment has been acquired in a joint venture that includes a partner in West Hartford’s Blue Back Square.
The Shops at Evergreen Walk was purchased by Greenwich-based Brand Street Properties and investment giant Barings for $98.3 million from PGIM, the former Prudential Global Investment Management, one of the original developers of the center near Interstate 84.
As Evergreen Walk’s manager for the last five years, Brand Street, part owner of Blue Back Square, has led a turnaround of The Shops at Evergreen Walk taking the 400,000-square shopping center from a 50% occupancy to one that is now over 90%.
The price paid for Evergreen Walk is nearly four times the $27 million paid in a foreclosure for the nearby Shoppes at Buckland Hills mall earlier this year. The Manchester mall is more than three times larger, at 1.3 million square feet.
Some of the recent additions at Evergreen Walk include Whole Foods Market, lululemon, Golf Lounge 18, J. Crew Factory, Gap Factory, Nike and Bluemercury.
Paul Brandes, president of Brand Street Properties, said Evergreen Walk “has been a cornerstone of the South Windsor retail landscape for two decades” and has developed into a regional destination.
“Having managed the property for the last five years, we understand what makes The Shops at Evergreen Walk special,” Brandes said, in a statement. “This acquisition allows us to build on the strong foundation established over the last 20 years while continuing to invest in best-in-class retailers, elevated experiences and community-focused programming.”
Chris Cassella, managing director at Barings, said Evergreen Walk fits in Barings’ strategy of investing in dominant open-air centers in strong suburban markets.
“South Windsor benefits from attractive demographics and sustained consumer demand, and we believe Evergreen Walk is well positioned for long-term performance,” Cassella said, in a statement.
The new owners say they will continue capital improvements, with reinvestments in the property, upgrades to common areas and expanded events to attract visitors and strengthen connections to the community.
Brand Street is privately-held real estate investment, development and management firm that specializes in retail and mixed-use properties, taking a hand-on, strategic approach. In addition to Connecticut, Brand Street owns and manages properties in seven Northeastern and Mid-Atlantic states.
Barings, based in Charlotte, NC, is a $470 billion global asset management firm that partners with institutional, insurance and other clients.
Kenneth R. Gosselin can be reached at [email protected].