Trolley Square has been sold to Portland-based Scanlan Kemper Bard Cos., which plans major improvements at the mall, Scanlan Kemper confirmed Tuesday.
Bob Scanlan, SKB founder, told the Deseret Morning News that the company purchased the 13.5-acre parcel, which includes the existing 239,000-square-foot shopping facility, for $38.6 million last Thursday.
"We think the location is outstanding, and we don't think the improvements were in keeping with the quality of the location," Scanlan said.
Going forward, Scanlan said SKB will invest about $26 million to improve the existing buildings at 602 E. 500 South in Salt Lake City. It will spend another $54 million to build an additional 50,000-square-foot to 55,000-square-foot structure to house a new anchor tenant and to build an underground parking structure.
The new anchor will be "substantially larger than any that are there now," Scanlan said. "It will be one that will become somewhat of a destination retailer, one that will be of a caliber of a luxury food store, like a Crate & Barrel or the Cheesecake Factory. Something like that."
In addition, Scanlan said SKB has plans to build about 150 residential condominiums on site, though details about that part of the project are still being worked out and a timeline for commencement or completion of those residences hasn't been released.
"We just closed last week," Scanlan said. "It has to be designed, and we have to get the proper entitlements and permits. But we've got exciting plans for Trolley Square."
Scanlan Kemper Bard purchased Trolley Square from Indianapolis-based Simon Property Group, the nation's largest mall property owner with about 300 properties.
Mall manager Dawn Katter confirmed the sale but declined further comment.
SKB's portfolio in Utah also includes industrial and commercial properties, many located in the industrial parks near the Salt Lake International Airport.
E-mail: jnii@desnews.com