$250 Million Retail Project in Newburgh On Hold - UPDATE
John Jordan | March 21, 2016
NEWBURGH—Here’s a head scratcher, considering the robust commercial real estate market in the US and specifically in the Hudson Valley.
A long-delayed, but much anticipated retail project here is on hold, a victim of the changing retail investments market, the ownership tells Real Estate In-Depth exclusively.
The $250-million Loop-Hudson Valley project, which had leased more than 80% of the planned 650,000-square-foot to 700,000-square-foot project to be built on a 120-acre parcel at the junction of I-84 and Route 300, was scheduled to have broken ground nine months ago. However, the project is now on hold and may not move forward in the same scope as had been planned. The development is being built by a partnership of Wilder-Balter, Partners of Elmsford, NY and The Wilder Companies of Boston, MA.
Real Estate In-Depth questioned the property ownership after expected construction work at the project site had not begun although ownership previously stated a groundbreaking for the project would take place in June 2015.
John Bainlardi, director of development for Wilder-Balter Partners, in a statement released exclusively to Real Estate In-Depth, stated, “As per your inquiry, the Loop-Hudson Valley project is on hold. The Wilder Companies have been very successful with the leasing efforts to date with commitments from some of the best tenants in the business for over 80% of the project GLA (gross leasing area). Unfortunately, project timing has been delayed as project costs have increased and the capital markets have changed how large shopping center developments are underwritten.”
He continued, “At this time, we do not have the necessary equity capital committed to allow us to proceed with construction and deliver pads and/or buildings to tenants in 2017 as planned. In the immediate future we will be reevaluating the project size, timing and economic feasibility to determine the appropriate course of action for development of the site. Accordingly, over the past two weeks we have advised the tenants, Town (of Newburgh) and (Orange) County officials.”
The Wilder Companies, which reported earlier this month that it was awarded the leasing and management contract for The Source at White Plains, referred all questions concerning The Loop-Hudson Valley to partner Wilder-Balter Partners.
When asked if the signed tenants have pulled out of the project, Bainlardi responded, “No tenants have pulled out to date. Most have expressed that they still want to be a part of the market and our project. They are waiting to hear back from us with our plans for moving forward.”
The project, formerly known as “The Marketplace,” was to feature more than 50 retailers and restaurants. Among the major tenants signed on at the project are Dick’s Sporting Goods, Field & Stream, BJ’s Wholesale Club, HomeGoods, Michael’s, ShopRite, Regal Cinema 12 and Chipolte.
Tom Wilder, a principal of The Wilder Companies of Boston, appeared before a meeting of the Hudson Gateway Association of Realtors’ Commercial Investment Division held at the Harness Racing Museum and Hall of Fame in Goshen on March 26, 2015.
The Loop-Hudson Valley secured all its approvals for the 650,000-square-foot retail development to be built on a 120-acee parcel in the Town of Newburgh. The retail project drew some criticism years ago and even a lawsuit by the Newburgh Mall that was intent on blocking the project from starting construction. The real estate recession wound up delaying the project and in the interim, original developer Wilder-Balter Partners of Elmsford, NY took on partner The Wilder Companies of Boston, MA (no previous relationship). The new partners altered the original plans for the project to the Loop concept.
The Loop Hudson Valley was to be the fourth Loop property for The Wilder Companies. The other Loop properties are in Massachusetts, Orlando and Kissimmee, FL.
Editor, Real Estate In-Depth