After two years in receivership following a default from its prior owner, Stony Point Fashion Park is in new hands.
The South Richmond mall sold Monday for $14.6 million, city records show. The buyer is Second Horizon Capital, a Florida-based real estate investment firm.
Second Horizon’s was one of eight initial offers on the mall, according to court documents. Those were later whittled down to four offers ranging from $13.2 million to $14.6 million.
The 421,000-square-foot mall and 45-acre property were most recently assessed by the city at $40.8 million.
In an interview Wednesday, Second Horizon co-founder Howard Levine said his team is still determining its plans for Stony Point. Levine said they’re initially focusing on reinvigorating the mall while also reaching out to the community about what it would like to see on the site in the future.
“As we go (through the design process) we’re planning to reach out to stakeholders and government leaders to learn more about the needs of our community,” Levine said. “There’s a lot of ideas that we know exist for it, but it’s a little premature to get particular and concrete.”
The sale comes two years after the 19-year-old mall fell into receivership as its former owner, Starwood Retail Partners, fell behind on its payments on the debt securing the property. Starwood had purchased the mall in 2014 for $72 million from its original developer.
Second Horizon’s transaction was recorded with the city April 4, about three weeks after a Richmond Circuit Court judge issued an order approving the sale.
Levine and business partner Camilo Varela founded Second Horizon last year. Levine said their backgrounds are in redeveloping assets similar to Stony Point.
“We look to reimagine large-scale, underutilized properties, and really transform them into vibrant destinations and economic engines,” Levine said. “We’re really focused on assets that need to undergo significant, impact-focused transitions.”
He said it’s their first deal in Richmond and that they were drawn to the area by its economic environment, which he described as robust.
“One other thing that really drew us was … thinking about what this property could become in the future and developing it as a significant activity hub for the neighborhood and Richmond more broadly,” Levine said.
JLL had the listing on the mall for its sale, and Levine said the firm will continue on as property managers for Stony Point.
Since opening in 2003, Stony Point has appeared to struggle over the years compared to peers like Short Pump Town Center, another outdoor mall that opened two weeks earlier. While there have been a few newcomers to Stony Point in recent years, like Stumpy’s Hatchet House and Edible Education, more tenants have been on their way out lately, with stores like Banana Republic, Sur La Table and Les Crepes closing since 2020.
Court documents related to the mall’s receivership paint a more in-depth picture of the deal.
Two of Stony Point’s three anchor spaces were not included in the sale: those occupied by Dillard’s and Saks Fifth Avenue, which both own their buildings. The deal also included an 11-acre parking lot at the mall’s north end that was sold to Dillard’s for $1, per the March 15 court order.
The 89,000-square-foot former Dick’s Sporting Goods anchor space, which has been vacant since 2018, was included in the deal, as was the 41-acre parking lot that was formerly owned by the Richmond Economic Development Authority. Once eyed as a possible expansion site for the mall, the EDA-owned parking lot was transferred to the mall’s former owner last year for no cost — something that was possible because of a clause in the 2002 agreement between the city and Taubman Centers, the mall’s original developer.
Wells Fargo Bank was the trustee overseeing the mall’s receivership. A lawyer representing the bank filed a motion requesting authorization to sell the mall on March 1, a request that was approved two weeks later.
In the March 1 motion, Wells Fargo’s attorney states that last September it received eight initial offers on the mall that they later whittled down to four. It states that Second Horizon was awarded the right to buy the property in November.
Leonard Sledge, the city’s economic development director, said he’s glad to see the sale of the mall complete. He added that the city is also mindful of the future land use recommendation for the mall site as specified in the Richmond 300 master plan, which identifies Stony Point as a “priority growth node” for the city.
“We look forward to working with the new owners to hear their thoughts and plans on a revitalization of (Stony Point),” Sledge said.
- • BizSense reporter Jonathan Spiers contributed to this report.
Correction: The square-footage and acreage of the parts of the mall property involved in the transaction were initially misreported. Those details have been corrected.