A pair of Maryland-based investors have paid $12 million for Mansfield’s East Brook Mall shopping plaza and are planning major renovations as well as a complementary 150-apartment development.
“We got a very good price on the mall,” said lead investor Carl Verstandig, president and CEO of America’s Realty LLC. “That’s why we have money to renovate and redevelop. The goal is to get the occupancy to 100% and build mid-rise (apartment buildings) in the back.”
Built in 1975, the 275,230-square-foot East Brook Mall sits on 27.63 acres at 95 Storrs Road. It last sold for $30.1 million in 2008. The property also hosts a 2,380-square-foot bank building completed in 2022.
The town’s 2019 appraisal valued the property and buildings at $16.9 million.
The most recent sale was recorded Oct. 8. Two days later, M&T Bank withdrew a foreclosure lawsuit against the prior ownership.
Ownership of the property was previously divided between three limited liabilities, each naming Thomas Klein, of Monsey, New York, as principal. M&T’s suit claimed Klein’s LLCs defaulted on a portion of a $21.5 million mortgage issued in 2016. More than $19.1 million in principal, interest and late fees was owed as of Oct. 30, 2023, according to the suit.
The new owners plan to invest in repairs that will reorient many of the store spaces to access from the outside rather than an interior corridor, said Howard Barshop, Verstandig’s partner in the purchase.
“Any center I’ve been involved with, it’s always moved to a better spot,” Barshop said. “Anything we say we are going to do, we are going to do.”
Barshop is principal of an LLC that took a 12.5% stake in the mall. Another LLC, headed by Verstandig, owns the remainder.
Verstandig, for over 40 years, has built a $1 billion real estate empire focused on the acquisition of “blue collar” shopping centers, according to the America’s Realty website. On Thursday, the veteran investor said his portfolio includes more than 20 million square feet in 300 shopping centers across 29 states.
‘Numerous opportunities’
Mansfield’s mall has a movie theater and strong anchor tenants, including TJ Maxx, Kohls and Old Navy, and benefits from proximity to Routes 6 and 195, noted Kathleen Paterson, acting executive director for the Mansfield Downtown Partnership. It serves as the main shopping hub for Mansfield and surrounding communities, she said.
“There is a lot of potential in that property, a lot of good anchor tenants in a convenient location,” Paterson said.
Verstandig said the property had suffered neglect but still managed to hold quality tenants, a testament to a client base bolstered by nearby UConn.
“That’s why this asset fits, because it’s been neglected,” Verstandig said. “I think for the neglect, for it to be 80% occupied is miraculous.”
Verstandig is already lining up contractors for a full roof replacement and installation of rooftop solar panels, planned for the next three to four months. Lighting will be switched to LEDs before spring.
Parking lots will be paved and restriped in spring, he said. Landscaping will also be overhauled, he said. He estimated renovation costs at around $5 million.
“That’s what attracted me to the area,” Verstandig said. “I feel there’s 35,000 students and there is a void of really first-class shopping until you go out of the area.”
Verstandig said he expects to be able to fill vacancies in the mall in about a year. He hopes to clear permitting in about 15 months for an approximately $35 million to $40 million apartment development.
Based in Woodbridge, New Jersey, The Kislak Co. Inc. brokered the off-market sale. Executive Vice President Barry Waisbrod represented the buyer.
The sale was completed in partnership with Andrew Knight of New England Commercial Brokerage.
This is Verstandig’s first venture in Connecticut, but he is already eying others.
“We hope to do quite a bit more in the next two years, five or six throughout Connecticut,” Verstandig said. “We are looking at numerous opportunities.”
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