Rockland County Investor Acquires Troubled Orange County Retail Complex
John Jordan | February 6, 2018
MIDDLETOWN—The Playtogs Shopping Plaza, a troubled retail and office property on Dolson Avenue here, has been acquired by Rockland County-based Concord Capital New York.
The investment firm acquired the 800,000-square-foot mixed-use site last month for approximately $4 million from CIII Asset Management, a loan servicer that foreclosed on the previous owner. Concord Capital reports that the lender was awarded a $17.25-million judgment against the previous owner of the property that is located in the Town of Wallkill and the City of Middletown in Orange County.
The acquisition includes Playtogs Plaza, a four building community retail center totaling 203,000 square feet with more than 40 retail stores/spaces. The property is 40% leased with a diverse mix of national and local tenants that include: Family Dollar, TD Bank, Rent-A-Center, Mavis Discount Tire, Carvel, Middletown Cinemas and others. Completed in 1986, the center also features a large parking lot that allows parking for nearly 1,000 cars.
Not included in the purchase is the adjoining National Wholesale Liquidators (formerly the storied Playtogs discount retailer that ceased operations in the late 1990s). Verizon, Auto Zone, Wendy’s and a Dunkin Donuts are located on the site as out-parcels.
Concord Capital New York says it will rename the site—Middletown Plaza and Playtogs Corporate Center.
Concord Capital’s founder and CEO Eric Jacobov plans to renovate the existing structure and lease the mall at “highly competitive rates.” Jacobov says he has not ruled out future development on the site that could include constructing multi-family housing and even a hotel on the property.
“Our rents will be cheaper and more aggressive that anyone else—between $8- and $15-per-square-foot—to attract long-term tenants,” says Jacobov. “We purchased the shopping center at a low cost basis so we can rent out space at much lower rates than nearby stores and still be profitable.”
In addition to smaller vacant stores, Concord is looking to lease part of the three-story office building on the site. The center also features a 56,000-square-foot anchor retail space that previously housed a Redner’s Warehouse supermarket.
“We want a big tenant like another supermarket to take the entire space but we are also open to dividing the space to accommodate two large stores at over 25,000 square feet each,” Jacobov notes.
Concord Capital New York announced last year plans for a $175-million transit oriented development project in Downtown Spring Valley.
The plan, approved by the Village of Spring Valley Urban Renewal Board, will be the largest urban redevelopment project in Rockland County.