Village Square, The District get new owners

Real estate investment firm Westport Capital has purchased the distressed Village Square shopping center at Sahara Avenue and Fort Apache Road in Las Vegas, the Los Angeles-based company announced Wednesday.

Financial terms of the deal were not disclosed.

Bank of America foreclosed on the 250,000-square-foot shopping center, anchored by Regal Cinemas, in 2009. The bank was seeking nearly $60 million in court proceedings.

Despite being close to affluent neighborhoods such as The Lakes, Queensridge and Summerlin, Village Square struggled with high vacancy rates.

Jim Weld, commercial broker for Associated Ventures Capital, said he'd heard complaints about Village Square's poor design. In-line stores within the shopping center were blocked from view on Sahara Avenue by stand-alone pads out front, most of them restaurants, he said.

Other observers blamed owner Triple Five Development for "extremely aggressive and unfriendly policies" toward Village Square tenants. Rents were sky-high and promises of advertising and community events to attract customers were never fulfilled.

"We will immediately implement an aggressive leasing and marketing program, along with property upgrades and enhancements that will soon establish Village Square as the premier retail and office complex in this market," Westport principal Scott Chernoff said in a statement.

Separately, Vestar Development, in a joint venture with New York-based Rockwood Capital, acquired The District at Green Valley Ranch for $79 million. Lenders foreclosed on the property in January.

The 21-acre first phase of The District, developed in 2004, comprises 212,622 square feet of retail and office space and 88 luxury condominiums. Tenants include REI, Pottery Barn, Anthropologie, Williams-Sonoma, Ann Taylor Loft, White House/Black Market, King's Fish House and P.F. Chang's.

Phase two of The District was developed in 2006 and totals 171,485 square feet on 16 acres. The property consists of six buildings with a retail and office tenant mix. It's anchored by Whole Foods.

"This center has recently struggled, but we are confident and excited about stabilizing it over the coming year," Vestar Development President Rick Kuhle, president said. "We're very bullish about these types of value-added investment opportunities and are aggressively seeking more properties like it in Las Vegas and throughout the West."

Contact reporter Hubble Smith at hsmith@reviewjournal.com or 702-383-0491.