Colonial Park Mall sold

Biz News Pa announcement:

A Massachusetts-based developer is acquiring the Colonial Park Mall, an aging retail complex that local officials hope to see rejuvenated.

• A partnership headed by the developer, Zi Qian "John" Zhang, is paying nearly $8.8 million for the mall, which is at 4600 Jonestown Road in Lower Paxton Township, according to county deed records.
• Zhang is still working on plans for the roughly 31-acre property, but they are likely to include opening a trampoline park in the former Bon Ton space, according to Thomas Ryan, a Danbury, Connecticut-based attorney who represents Zhang.
• Zhang, who owns a company called JZ Real Estate, was not available yesterday afternoon for comment, Ryan said.
• But in an interview with biznewsPA, Ryan described Zhang as an experienced real estate investor and developer who owns retail properties throughout the Northeast and New England, including a chain of trampoline centers known as Fun City Adventure Parks. The chain has a location in suburban York,
• According to Zhang's website, his real estate portfolio spans 2 million square feet of leasable space.
• The mall's seller is an affiliate of New York-based Kohan Retail Investment Group.
• "I think it's good for the new buyers," said Kohan principal Mike Kohan. "It's the end of a chapter for us."
• The sale does not include several retail properties surrounding the mall, including a Boscov's store, a former Sears store, a former Sears Auto location, a former Enterprise Rent-A-Car location, Mountz Jewelers and two restaurants.

What's next: Ryan said he and Zhang hope to meet soon with township officials, who have previously expressed interest in seeing a redevelopment plan for the mall property.

• "The township looks forward to working with the new owner," said township spokesperson Jack Sherzer.
• In general, Zhang aims to spruce up properties, maintain them and fill them with tenants, said Ryan, noting that the developer is aware of the local hopes for Colonial Park.
• "It's not going to be an overnight process," Ryan said of work on the mall.

The background: The roughly 344,000 square-foot mall was erected in 1960 but is now more than two-thirds empty.

• "It's no different than any dying-mall situation throughout the country," said Ryan, who also invests in real estate himself.
• Hoping to infuse new life into the property, township officials rezoned it in 2020 to encourage mixed-use development along the lines of the King of Prussia Mall outside Philadelphia and the Shoppes at Belmont near Lancaster.
• Kohan Retail tried to auction off the mall this summer after a previous deal fell through.
• The mall has been closed temporarily following a storm last weekend, according to announcements on its Facebook page.