Seritage Growth Properties signed a joint-venture partnership with Invesco Real Estate to own The Collection at UTC, which involves the conversion of the existing Sears store and auto center at Westfield UTC in La Jolla, Calif.
The deal values The Collection at UTC at about $165 million, including pending completion costs. Seritage sold a 50% stake in the project to a separate account managed by Invesco for roughly $44 million in proceeds, which the company used primarily to repay the project's existing mortgage debt.
The joint venture will also invest or seek construction financing to fund the transformation of the Sears store and auto center into 226,200 square feet of space to be leased to retailers and dining, entertainment and fitness tenants.
