The owner of Towson Circle, anchored by Trader Joe's, Pier 1 and Barnes & Noble, said Wednesday it plans to buy the new movie theater and restaurant development next door for $40.5 million, redeveloping its current holdings to join the two properties.
Retail Properties of America Inc., a large Illinois-based real estate investment trust focused on shopping malls, said earlier this year it wanted to redevelop Towson Circle, adding apartments and a hotel. The purchase of adjacent Towson Square is designed to allow the firm to integrate the two properties into one development, the firm said in the release of its third quarter earnings.
Towson Square, which is more than 96 percent leased with a Cinemark Theater and restaurants such as Bobby's Burger Palace and Nando's Peri-Peri, opened in 2014. The property was redeveloped for $85 million by Heritage Properties and The Cordish Cos., the same Baltimore-area team that renovated Towson Circle.
Retail Properties of America purchased Towson Circle, a former Hutzler's department store, in 2004. The Towson Square deal is expected to close this month.
Dana Welsch of The Cordish Cos. said the firm had not intended to sell the Towson Square retail center but was persuaded by larger plans for the area.
"While it is not our nature or intent to ever sell a property, Heritage and Cordish cooperated in this transaction because … we felt it in the best interests of Towson's ongoing revitalization to facilitate this strategic merger of components of the two properties, as it will enable the further growth of Towson," Welsch wrote.