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TAUBMAN DROPS LAWSUIT AGAINST FOREST CITY

Taubman Centers has dropped a long-running lawsuit against the partners building Short Pump Town Center, Richmond, Va. The suit, brought against Forest City Enterprises and Pruitt & Associates, contested Henrico County’s $25 million bond sale to finance infrastructure at the $360 million open-air center. Taubman owns Regency Square Mall and is developing the $120 million Stony Point Fashion Park lifestyle center, both in Richmond.

DDR FORMS $250 MILLION VENTURE TO BUY MALLS

Developers Diversified Realty (DDR) and investment firm Coventry Realty Advisors have formed a $250 million fund to acquire shopping centers. The fund, called the Coventry Real Estate Fund II, has bought one mall to date, the 750,000-square-foot Ward Parkway Mall, Kansas City, Mo., for $48.5 million. DDR says it will invest 20 percent in each acquisition and manage the centers, saying that will “present opportunities for value creation” through improvement and expansion. Institutional investors will provide the other 80 percent of the fund, which Coventry will manage.

MAINE MALL ON MARKET

Maine’s largest retail property, the 1.2 million-square-foot Maine Mall, South Portland, is up for sale and could fetch as much as $250 million, an analyst told the Associated Press. The mall, built in 1969 and owned by Cigna, New York State Teachers’ Retirement System and S.R. Weiner & Associates, has sales per square foot of $465. Its anchors are Best Buy, Filene’s, J.C. Penney, Linens ’n Things, Sears and The Sports Authority. Simon Property Group manages the center.

KIMCO TO BUY MID-ATLANTIC REALTY TRUST

Kimco Realty Corp. is set to buy Lutherville, Md.-based Mid-Atlantic Realty Trust for $444 million plus $236 million in debt in a deal that would give Kimco stakes in 41 Eastern seaboard centers. Kimco is already the largest community center owner in the United States, and this deal would bring its portfolio up to 684 centers. Mid-Atlantic’s centers, which total 95 million square feet, are located primarily in Delaware, Maryland, Massachusetts, New York, Pennsylvania and Virginia. The parties expect to close the deal on or about Sept. 15.

MUSICLAND CHANGES HANDS

Analysts say Boca Raton, Fla.-based private investment firm Sun Capital Partners will have its work cut out turning around Musicland, the music and video chain it bought from Best Buy. The mall-based, 1,100-unit group, which comprises the Media Play, Sam Goody and Suncoast names, lost $441 million during its most recent fiscal year. In January Best Buy closed 110 Musicland units — 90 Sam Goody stores and 20 Suncoast video stores — and announced its intention to sell the company in March. A Musicland spokesman said Sun Capital could close more stores, relocate units within malls and sell downloadable music over the Internet.