LA GRANDE TOWN CENTER CHANGES HANDS

The La Grande Town Center, anchored by an Albertson's food store, is home to a broad variety of retail and service businesses. The town center's new owner, Phillips Edison, has plans for expanding the Dollar Tree space to accommodate another tenant. (The Observer/PHIL BULLOCK).

Phillips-Edison and Company, a real estate company specializing in neighborhood shopping centers, has purchased La Grande Town Center on Island Avenue.

Erik Harper of Phillips Edison's Salt Lake City office confirmed last week the company bought the center from Standard Insurance, but said he did not have information about the price.

He said the deal closed Sept. 29.

Phillips Edison owns more than 120 shopping centers nationwide, including three in Oregon. In addition to the La Grande Town Center, the company owns centers in Hillsboro and Gresham.

Harper said the company buys and renovates under-producing neighborhood centers and works to improve them.

The La Grande Town Center, anchored by an Albertson's food store, is home to a broad variety of retail and service businesses.

Other outlets include The Cash Store, Schuck's Auto Supply, Maurice's, Blockbuster Video, Blue Mountain Sports, Capelli Hair Salon, La Grande Gold and Silver and Dollar Tree.

Number One China Buffet, fronting Island Avenue, and the Rite Aid department store to the rear of the parking lot, are also part of the center, as is a building that houses American Family Insurance, the Armed Forces Recruiting Station, and Sterling Savings Bank.

Harper said Phillips Edison has plans for expanding the Dollar Tree space to accommodate another tenant.

He added some now-vacant space along Albany Street to the back of the main building may also be opened.

"It used to be an indoor mall, and there's some vacancy in the back that could be used for store fronts," he said.

Harper declined to say whether Phillips Edison is currently negotiating with prospective tenants.

He said in the past the company has worked out favorable arrangements with national chains like Rainbow Apparel, Burke's Outlet, and Walgreen's.

"We have an aggressive leasing program, so we tend to fill up those spaces," he said.

While some remodeling and expansion may be necessary, the center doesn't have many maintenance problems, according to Harper.

"That center is in a lot better shape than those we typically buy," he said.