posted on June 17, 2011 00:17
The Austin Community College District signed a deal for the remaining 17.3 acres of land and buildings at Highland Mall
for about $15.9 million — bringing its proposed ownership to 100 percent of the embattled retail center property.
The community college has slowly purchased the mall property, plus two building, over several months as the owners moved through a complex legal tangle with one of its tenants. The most recent deal for land and the former J.C. Penney brings the school's total investment at Highland Mall to about 80.8 acres and three buildings totaling 642,000 square feet. The deal with RedLeaf Properties LLC is expected to close in August, according to a press release.
“This was a series of complex transactions with a number of potential obstacles — including multiple original owners and legal challenges at the mall,” RedLeaf PrincipalMatt Whelan said. The deal allows for RedLeaf to reacquire parts of the property not being used for educational purposes. “Together we have accomplished a lot in just over a year’s time.”
The ACC Board of Trustees is expected to consider a revenue bond to finance the deal. The space would be used for instructional space, consolidated administration space, a continuing education center, convocation center, shared nonprofit space, a conference center and a wellness and professional development center. Renovations will take about three years, the announcement said.
Tenants in the mall will stay for at least the term of leases. Highland Mall owners, which up until last year were Simon Property Group Inc. and General Growth Properties Inc., recently ended a two-year legal tangle with Dillard’s, which accused the mall of losing its first-class status as it became increasingly empty. J.C. Penney closed its store there in 2006, followed by one of two Dillard's about three years later.
The Highland Mall plan is just one of several new campus ACC has in the pipeline throughout Central Texas. In 2010 and this year, the school completed a massive $35 million land grab for properties in Leander, Bastrop, Elgin, San Marcos and Kyle. To read more about those properties, click here.
Highland Mall timeline:
- May 2010: 18.5 acres and 194,000 square-foot Dillard's building for $4.71 million
- December 2010: 12.8 acres and 223,000 square-foot Macy's building for $5.7 million
- May 2011: 32.2 acres under core of mall, subject to ground lease with mall operator
- August 2011: 17.3 acres and two buildings (225,000 square feet) for $15.9 million
ACC enrolls more than 45,000 credit students, offering university transfer courses, two-year associate degrees, certificates and other programs.
6/6/10, Austin Business Journal