The Sun
Sunnyvale's Newspaper

Town center sale appears to be pending

City transfers garage sublease

By Justin Berton

Conflicting reports surround the possible sale of the Sunnyvale Town Center to Dubrovnik Associates Inc., the local developer which purchased the Town & Country Village in February.

According to a report issued by the city manager's office, Dubrovnik has "entered into a purchase and sale agreement" with current owners TrizecHahn that is set to close escrow May 26.

The move was made public two weeks ago when TrizecHahn requested city approval to put the sublease for the mall's parking garage in Dubrovnik Associates' name.

But Ivan Margaretich, manager of Town & Country Village, said Dubrovnik Associates was not involved in the purchase of the Town Center.

Nick Gera, founding partner of Dubrovnik Associates, did not respond to repeated phone calls to comment on the issue.

At the May 5 Sunnyvale City Council meeting, councilmembers approved the transfer of the garage sublease pending the close of escrow. The city owns the parking garage.

Mayor Jim Roberts did not participate in the discussions, citing a conflict of interest because his family business, Sunnyvale Lumber, sells products to Dubrovnik Associates.

In the past, Gera has voiced his concern over the issue of downtown parking. At a council meeting last month, Gera said he feared plans for the new downtown would leave future Town & Country Village shoppers with few parking options, slowing down foot traffic to the shopping center he has pledged to rejuvenate.

When Dubrovnik took over ownership of the center, it had 18 vacancies. It now has 10.

Dubrovnik Associates has hired the Keenan Land Company to study the Town Center and prepare ideas for redevelopment to coincide with the revitalization of Sunnyvale's downtown, according to the city's report.

Chop Keenan, president of the company, confirmed that Dubrovnik Associates hired his firm but added that ideas for the mall have yet to surface.

"It's premature for us to comment at this time," Keenan said about the project.

If the deal is completed, the move would mark the third downtown structure Dubrovnik Associates has acquired in the last five years. In addition to purchasing Town & Country Village for $10 million this year, the group bought and revamped the historic Del Monte Building in 1993.

TrizecHahn has been trying unsuccessfully to sell the Town Center property for several years.

Teresa Holve, senior director of marketing for the company, said the Toronto-based group is in the midst of selling 20 of the 24 properties it owns or manages in a restructuring move for the business.

Holve said the group plans to purchase higher-profile properties such as new properties on the strip in Las Vegas.

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This article appeared in the Sunnyvale Sun, May 20, 1998.
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