The next step in the evolution of Stony Point Fashion Park looks to involve a land deal with the city’s Economic Development Authority.
Starwood Capital Group, the firm that owns the 16-year-old South Richmond retail center at 9200 Stony Point Parkway, is purchasing a roughly 3-acre section of the surrounding parking lot for an expansion of the mall.
The EDA owns the lot and Starwood has the rights to buy it based on terms of a deal made between the city and the original developer of Stony Point, Taubman Centers, in the early 2000s. Starwood bought the mall from Taubman for $72 million in 2014.
Starwood spokeswoman Karen Alley confirmed that they’re preparing to purchase the land.
“We had the rights under our agreement with the city to purchase the land and we have chosen at this time to enact on that agreement,” Alley wrote in an email. “As the retail environment evolves, so will we.”
Alley declined to comment on Starwood’s plans for the land, adding only that they’ll “have some exciting opportunities to share in the near future.”
EDA documents indicate that Starwood plans to build on the site. Minutes from the EDA’s November 2018 board meeting state that the lot would be used for an addition to the shopping center.
It’s unclear from Starwood or EDA minutes exactly which section of the parking area will be sold. The authority owns roughly 41 acres of parking that surround the 660,000-square-foot mall. Starwood owns the bulk of the mall itself, with the Dillard’s and Saks Fifth Avenue department store buildings owned by their respective tenants.
The purchase price for the 3-acre section will be determined by a formula that accounts for a portion of the difference between the land’s appraised value and the value that was set when the EDA took ownership of the land when the mall was built in 2003 – $13.5 million, according to city property records.
An expansion at Stony Point would mark the ownership group’s latest efforts to transform the look and flow of the mall in an age when traditional malls are struggling.
Starwood began tens of millions of dollars’ worth of renovations at Stony Point after it acquired the property. It also recently began to welcome more nontraditional mall tenants, such as a yoga studio and an escape room. The mall’s former Dick’s Sporting Goods store remains vacant after it closed last year.