The tentative sale of The Plaza has officially been called off.
Financing obstacles were cited as the cause of the deal’s collapse. LU is moving on and working to secure new tenants for the midtown shopping center.
LU remains interested in selling, but not in the near future. By holding onto the development and increasing its occupancy, the school expects it could as much as double its value.
The Plaza, a former hub of Lynchburg shopping, was gifted to LU last fall by its owner. A short time later, Falwell announced they were “leaning” toward selling the property to a private commercial developer, although he cautioned that nothing was set in stone.
The deal fell through a month or so ago after the buyer was unable to secure a favorable loan agreement.
The institutions that were willing to lend demanded down payments twice as large as expected.
The interested buyer was Burr Ault of Ault Real Estate Group, a Washington, D.C.-based developer who owns the Wards Corner shopping center near Target.
His identity was previously concealed in keeping with a confidentiality clause in the purchase contract.
Ault’s pursuit of The Plaza sparked hope in the community that the fading shopping center would be restored to its former status as a vital commercial asset.
It might be a year or more before Liberty puts the property on the market, although inquiries are already coming in.
Courtship of new tenants never stopped throughout the sale negotiations, he noted, and new leases are close to being signed.
The school is focused on landing anchor tenants capable of jumpstarting and sustaining activity in the smaller storefronts. A mix of uses has been pursued, including a grocery store and an office.
Officials envision the top level of the center will be made up of retail and restaurants, while the lower level will concentrate on offices whose employees will, hopefully, take advantage of the nearby stores.
LU is also exploring the idea of moving in some of its own programs, such as its aviation classes, and has identified a possible spot for a bigger and better bus transfer station.
Announcements concerning new tenants are expected to start rolling out sometime this summer. Current tenants have long-term leases and are expected to stay.