It's part of Mishorim USA’s strategy to buy and revive older shopping centers.
Mishorim USA Partner Mark Gold is eager to lease the Regency Court Shopping Center in Arlington and intends to fill the former Office Depot space with the Family Fun Zone.
He and Family Fun Zone operators Valeriya and Yekaterina Berezanskaya expect the entertainment center will open within a few months.
They said the 30,000-square-foot center will offer an arcade, party rooms, a laser zone, indoor glow-in-the-dark mini-golf, electric go-karts, bumper cars, and indoor playground and more catering to children ages 2 to 12. There also will be a parents’ lounge with sofas, TVs and cameras into the venue.
“Let’s make this place more fun,” said Gold.
Mishorim Gold Jacksonville LLC bought the center for $5 million in November. It was sold by 9276 Arlington Expressway Holdings LLC, a bank trustee and asset manager that had taken title to the property.
Property records show the 11 buildings at Regency Court were built from 1973 to 1985. The property’s 2018 assessed value in progress is $13.9 million.
Gold said his group intends to invest $12.6 million in the property and already has painted, cleaned out vacant tenant spaces, put in music and lighting, made repairs and spruced up other areas.
That boosts the total investment to $17.6 million.
Regency Court comprises 220,000 square feet of retail space on more than 17 acres at 9200 to 9398 Arlington Expressway, opposite Regency Square Mall. Major tenants include Youfit Health Clubs, Rooms To Go, Lumber Liquidators, HoneyBaked Ham, Longhorn Steakhouse, Pearle Vision and K&G Fashions.
A NASCAR vehicle is displayed at the entry to advertise the Family Fun Zone.
Gold said occupancy has risen from 30 percent to 85 percent and he hopes to announce a tenant soon for the former Sports Authority space.
Gold set up a leasing and management office on-site and enlisted CBRE Inc. Associate Lara Bahri to assist with leasing the space.
“I buy this kind of center so I can bring a new image,” he said.
Gold said Mishorim Gold owns 6 million square feet of retail space across the country.
He said he wants to add more shopping centers in Jacksonville to the portfolio. “I’m here to buy 1 million square feet,” he said.
At Regency Court, Gold said the traffic counts are strong and provide visibility for potential customers along the Arlington Expressway, which connects Atlantic Boulevard travelers to the Mathews Bridge into Downtown.
“If you have traffic, you have free advertising,” he said.
He wants to focus on adding family entertainment and services at Regency Court, including restaurants as tenants and outdoor events in the large parking lot.
He will check with the city about setting up antique car shows and farmers markets, for example.
Gold is aware of the struggles facing Regency Square Mall across the street, but he says large enclosed centers are hurting around the country.
Lifestyle and open-air centers are doing better, he said.
Gold said Mishorim, based in Richmond, Virginia, buys older shopping centers with vacancies and invests in reviving them.
He invites local entrepreneurs to bring their ideas and see if they fit because he budgeted money to help new businesses.
“I do this because I love what I do,” he said.