Virginia group hopes to buy Nylon Capital
By Tony E. Windsor
Seaford officials are optimistic about the potential of a Virginia development group to re-energize a once significant player in the city’s commercial district. After years of losing tenants and economic standing, the Nylon Capital Shopping Center is being eyed by Pantheon Capital Ventures, Alexandria, Va., as the sight of a “significant national tenant.”
Though Patheon President Stephen Masciola did not release the name of the national tenant, he has expressed his company’s interest in working with Seaford officials to renovate the shopping center. Patheon representatives have met with Seaford officials to discuss the facts surrounding its negotiations to purchase the struggling shopping center, located on Stein Highway and Atlanta Road.
In a letter to city officials, Masciola said Patheon Capital and its partners own and manage other shopping centers, including those located in the Washington, D.C. Metro area.
“Our group, along with our partners, own and manage a large square foot portfolio of shopping centers and very much look forward to working with the city of Seaford on this retail center renovation project,” he said.
Seaford Mayor Dan Short who has been among those officials who has met with Patheon Capital, said that this represents the “most credible opportunity” that the city has entertained in recent years. During the Tuesday, Feb. 12, meeting of Seaford Mayor and Council, Short said he is excited about what he has heard from the organization.
“We have met with two or three other entities, but this is the first really credible opportunity we have had,” he said.
“They are the only group who are willing to detail the plans they have for the shopping center. I feel they are straightforward and willing to put out the best effort. I feel this is the best thing we have heard for the Nylon Capital Shopping Center in a long time.”
Though Masciola and Patheon Capital are interested in revitalizing the shopping center, there are also some conditions that must be met to make the opportunity successful.
In his letter, Masciola said the group is asking that a special city-sponsored Refunding Revenue Bond loan issued in 1993 be “re-cast” for a period of not less than 10 years with interest scheduled for seven years and the last three years being amortized on a schedule of 25 years.
Patheon Capital is also asking to make arrangements to secure a portion of the center for a “national credit tenant.” The tenant would not be considered a part of the shopping center purchase and would bring revenue to help with the development of the shopping center. Masciola said the proposed national tenant has gotten its corporate approval to move to the Seaford site once the site is made available.
The current balance of the revenue bond is $2.85 million with an interest rate of 6.30 percent. Masciola is asking that the interest rate remain the same, but in order to make necessary renovations, Patheon Capital is asking the city to consider expanding the loan balance to between $3.5 and $3.8 million.
“Our plan is to reinvest into the center to reface and renovate the property, allowing re-tenanting efforts to proceed successfully,” he said.
The city continues to discuss Patheon Capital’s ideas and Short feels comfortable that the group is creating the type of excitement that the shopping center project needs. “I think the overall goal of Patheon is to bring the shopping center back to its full life. I think in the process we may see some change of usage out there,” he said.
It has been suggested that representatives of Patheon Capital may attend the next public meeting of Seaford Mayor and Council on Tuesday, Feb. 26 to share more information about the prospective Nylon Capital Shopping Center renovation project.
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