New ownership at Y
The Factory Stores at the Y in South Lake Tahoe are about to get an extensive makeover under new direction from a Sacramento-based investment firm, which acquired the property shortly before the holidays.
Sutter Capital Group partner Burke Fathy said the company bought the shopping center because it shows a tremendous amount of potential, despite being the victim of a few years of mismanagement. “I think a big part of (acquiring the property) is our ability to make it a much more attractive place to be and visit,” he said.
The shopping center, located on the corner of Highways 50 and 89, fell into foreclosure following internal issues within the family who once owned it, Fathy said. And it has remained in that “foreclosure limbo” for the last three of four years. However, under Sutter Capital Group’s management, the owners hope to “rebrand, renovate and reinvigorate” the property to “get it back to a stabilized state,” he added. New signage, stores and a different layout from the center’s current “L” shaped design are all possibilities at the site. The latter idea, which consists of demolishing the middle section of the building where it connects, is strongly being considered to open up the shopping center to allow bicycle and pedestrian access to the planned greenway behind the property. As for the stores at the center, Fathy said his firm plans to move away from the “outdated” factory store motif and introduce a more “traditional tenant mix,” which could include businesses like a restaurant and coffee shop. Big 5 Sporting Goods will likely remain on the property through the transformation, as it has a long-term lease at the center, Fathy added. But it remains to be seen whether the other tenants will stay at the site. Currently, about half of the center’s suites are vacant. Fathy couldn’t say how much the renovations would cost, as plans for the property haven’t yet been finalized. But he did say construction could begin as soon as summer. In the meantime, Sutter Capital Group will continue talking to South Lake Tahoe residents to get a better idea of what the community wants at the property, he said.
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