Date: Fri 15-Dec-1995

Publication: Bee

Author: ANDYG

Quick Words:

Sand-Hill-Plaza-Corson-sale

Full Text:

Sale Of Sand Hill Plaza Hits A Snag

B Y A NDREW G OROSKO

Plans for the sale of Sand Hill Plaza to an investment group have hit a snag,

casting doubt on whether the sale will take place, according to a spokesman

for Sand Hill Limited Partnership, the current owners of the

160,000-square-foot shopping center at 266 South Main Street.

Brian Corson of the partnership said Wednesday difficulties in completing the

sale involve the state requirement that the potential new owners of the plaza

obtain new permits for the plaza's small-scale wastewater treatment plant. The

state Department of Environmental Protection (DEP) regulates such treatment

plants.

It hadn't had been known until Tuesday that such permits would be needed by a

new owner, Mr Corson said. A sale closing on the property, which had been set

for December 15, has been called off, Mr Corson said.

After conferring with representatives of the investment group interested in

buying the shopping center, Mr Corson declined to disclose the group's

identity. He also declined to disclose the sale price of the shopping center,

which is the largest retail facility in Newtown.

Mr Corson said the wastewater disposal permits would have to be obtained by

the end of December for the sale to go through.

Town assessment records place the plaza's tax-assessed value as of 1991 at

$6.47 million. Because tax assessments are levied at 70 percent of estimated

market values, that would place the center's market value at approximately

$9.24 million as of 1991. The plaza opened in the fall of 1990.

Mr Corson said Sand Hill Limited Partnership had set out to refinance the

plaza several months ago, after which it was approached by the unnamed

investment group about selling the shopping center.

If a sale takes place, the new owners would build a planned expansion wing of

Sand Hill Plaza sooner than the current owners had planned, Mr Corson said.

The investment group interested in buying Sand Hill Plaza apparently has a

tenant lined up to occupy an expansion wing, he said. Sand Hill Limited

Partnership received approvals from the Planning and Zoning Commission (P&Z)

in July to build 21,450-square-foot addition to the north side of the plaza.

Mr Corson explained that the group that wants to buy the center has easier

access to the capital needed to build an expansion wing than does Sand Hill

Limited Partnership.

Mr Corson said the group is a "fairly good-sized company" that is in the

business of owning shopping centers.

Mr Corson said the Sand Hill Limited Partnership has received various offers

in the past to buy the shopping plaza but no sale took place. The pending

offer to buy appealed to partners because the "philosophy" of the would-be

buyers is similar to their own, he said.

On July 20, the P&Z approved the expansion wing which had been in the planning

stages for about three years. Access to the expansion wing would be provided

by an improved section of Washbrook Road extending to the plaza from South

Main Street.

Sand Hill Plaza received approval for the expansion under the P&Z's special

exception process. Approximately 78,000 cubic yards of earth materials would

be removed from the 37-acre shopping center in connection with the expansion

work. The planned expansion would have the same architectural features as the

existing plaza.