Bank of America buys Kenwood Towne Place - Tucson News Now

Reaction mixed to Bank of America buying Kenwood Towne Place

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The former Kroger 'fresh fare' store at the Kenwood Towne Place The former Kroger 'fresh fare' store at the Kenwood Towne Place

Bank of America purchased Kenwood Towne Place during an auction Thursday morning.

Construction halted at the retail center about two years ago after several lawsuits were filed against Bear Creek Capital, the developer of the project.

Bank of America purchased the retail center for $27.5 million, $2 million above the appraised valued of $25.5 million. Bank of America is also the first lien-holder and was a major financier for the project. 

The sale was ordered by Commons Pleas Court Judge Beth Myers in the civil case by various creditors against Bear Creek Capital. 

"Its certainly a step in the right direction. Its something that we've been waiting for a long time now," said Mitchell's Salon & Day Spa vice president, Mike Batchelor. Mitchell's is one of four businesses that now occupy Kenwood Towne Place. "We're hopeful that it will bring more tenants which in turn will bring more foot traffic to the project and we think it will definitely, in turn, create more business for us," said Batchelor

Kroger built a new store in the project, then closed it after only months of operation due to the surrounding project not being completed.  A couple of businesses are still operating on the ground floor.

 "I'm sure Kroger's not coming back so they'll probably have their work cut out getting other stores to fill that space," said Towne Place shopper, Chad Moon.

Another shopper wasn't sure the project could be resurrected. 

"Is it so far gone that they're going to have to spend a lot of time and a lot of money just bringing it back up to a standard where you can complete it?" asked Tom Johnson.

Copyright 2012 WXIX. All rights reserved.


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