By SHAWN PIATEK
The Tribune-Democrat
July 09, 2008 08:33 am
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A New York real estate investment firm confirmed Tuesday that it has purchased The Galleria shopping center in Richland Township.
Gemini Real Estate Advisors purchased the retail mall for more than $57 million from Zamias Services Inc. of downtown Johnstown.
Deeds filed in Cambria County show the transaction closed on June 6.
“We view it as the dominant regional mall in the trade area that serves about 220,000 people across a five-county market,” said Will Obeid, president of Gemini. “We don’t have any immediate dramatic changes planned for the mall.
“The Zamiases did a great job of bringing top-tier retailers into the mall over last few years. With 85 percent occupancy, it’s the picture of a stable property.”
The transaction includes the mall and its immediate surrounding property – with some exceptions. Bon-Ton, Sears and Boscov’s own their properties and were not included in the deal. The transaction also did not include any out-lot developments that are not physically connected to the mall.
The sale of the property also doesn’t remove Zamias from involvement with the mall. Obeid said his company has hired Zamias Services to manage The Galleria.
“Having them based there is a huge benefit for us and our investors,” Obeid said. “We know they will continue to do a great job for us in that regard.”
Officials from Zamias Services declined immediate comment on Tuesday.
The deal includes land between Sears and the food court entrance, where a fifth anchor store has been sought since the mall opened in 1992. The pursuit of a fifth anchor is continuing, Obeid said.
“There are a few ideas being tossed around right now for that fifth anchor,” Obeid said. “We have committed capital to looking into those opportunities and look forward to announcing something in the near future. We think Johnstown is going to be pleased.”
Gemini Real Estate Advisors, which operates from a main office along Park Avenue in New York City, owns and operates about 4 million square feet of commercial real estate. The company’s holdings include hotels and retail centers located largely on the East Coast but as far west as Chicago.
Obeid said he became aware that the property was on the market because his company has a longstanding relationship with Zamias.
He said the mall is even more attractive now because of Johnstown’s economy.
“We feel the Johnstown market is strong economically and probably will not decline as much as other markets that have seen a run-up in their home values over the past few years,” Obeid said. “That gives us more confidence in this market, and we view this as a very promising investment.”
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