CB Richard Ellis’s retail practice is off and running in 2011 as the brokerage firm announced four retailduring the first full week of the year.
In the largest deal, CB Richard Ellis arranged the sale of the 299,103-square-foot London Square shopping center and office building in Miami. The property was acquired by institutional investment advisor, RREEF, on behalf of an offshore client for $95.3 million, or $318.42 per square feet.
CBRE's National Retail Investment Group Florida Team exclusively represented the seller which was an affiliate of Boca Raton, Florida-based Woolbright Development Inc. The purchaser’s advisor, RREEF, is the real estate investment management business of Deutsche Bank’s asset management division.
“The London Square sale is the largest transaction involving an open air shopping center in Florida since 2008,” CBRE Senior Vice President Casey Rosen said in a statement. “The buyer was interested in a stable, core-quality investment involving excellent real estate and London Square met that criteria. More broadly, the transaction solidly confirms that institutional capital has regained enough confidence in the market to make a major investment in Florida retail property.”
London Square includes a 60,665-square-foot office building. It is currently 99 percent leased and features a strong line-up of national and regional tenants including Ross Dress for Less, TJ Maxx / Homegoods, Miami Children's Hospital, Party City, Dollar Tree, Sergio's, Starbuck's and others. Costco operates in a separately owned 150,535-square-foot building that was not included in the transaction.
In a separate deal, CBRE arranged the sale of the 169,053-square-foot Village Commons, a Publix anchored shopping center in West Palm Beach, Fla. The property was acquired by a fund managed by BlackRock Inc., for $25.7 million, or $152.02 per square foot.
CBRE's National Retail Investment Group Florida Team exclusively represented the seller which is a venture between Regency Centers, First Washington Realty Inc., and the California Public Employees' Retirement System.
Village Commons is currently 73.2 percent leased and features national and regional tenants including Publix, CVS, Panera Bread and Starbucks.
In a third deal, CBRE announced the sale disposition of the 71,990-square-foot Trinity Village Center by Jefferson-Pilot Investments to a California-based private investment group for $9.5 million. CBRE Senior Vice President Mark Shellabarger brokered the transaction on behalf of the owner.
The center features regional and national tenants including restaurants Crispers, Five Guys Hamburgers, and Bonefish Grill and service providers AAA Auto Club South and Synovus Bank. At the time of closing at the end of December 2010, the property was 78 percent leased.
Lastly, the firm announced that it arranged the sale of the 59,205-square-foot Nona Commons in Orlando, Fla.
Bill Strauss, Dave Donnellan, Todd Weintraub and Dan Baker of CBRE's Private Client Group – Retail Properties, and retailservices expert, Mike Millard, exclusively represented the seller, Moss Parc Commercial LLC. The property was acquired by Lexin Nona LLC.
HFF Arranges Financing for Inland Western
Holliday Fenoglio Fowler L.P. (HFF) announced that it had arranged nearly $80 million in financing for Inland Western Retail Real Estate Trust Inc. in separate deals.
The Dallas office of HFF arranged $63.5 million in financing on behalf of Inland Western for three retail properties, the 536,141-square-foot Lincoln Plaza in Worcester, Mass., a 158,063-square-foot Lowe’s/Bed Bath & Beyond in Butler, N.J. and the 61,839-square-foot Quakertown Plaza in Quakertown, Pa.
Working on behalf of the borrower, HFF placed a blanket mortgage loan with New York Life Insurance Co. for five years.
Separately, the Dallas office of HFF arranged $14.2 million in financing for Phase One of Southpark Meadows Shopping Center in Austin, Texas for Inland Western.
HFF secured the five-year, 4.73 percent fixed-rate loan through Nationwide Life Insurance Co. Loan proceeds were used to retire the existing debt on the property. HFF will also service the loan.
Southpark Meadows is a 1.6 million-square-foot retail development located in south Austin. Phase One includes 266,840 square feet and is anchored by Walmart. Additional retailers include PetSmart, Mattress Firm and GameStop.
In an unrelated deal, Inland Western sold of a former 78,657-square-foot Mervyn’s located in San Diego to American Assets for $13.2 million.
Including the recently announced sale of the Mervyn’s property in Escondido, California, Inland Western has now sold or leased approximately 958,139 square feet or an estimated 50 percent of the Mervyn’s vacancies, with an additional 433,991 square feet currently in active negotiations.
RCG Closes New Fund
RCG Ventures announced the final close of RCG Fund II. RCG is actively seeking to acquire $300 million in value-add assets over the next three years. RCG Ventures currently owns a portfolio consisting of 52 properties and approximately 5 million square feet.
Cole Buys Two Florida Properties for $47M
Cole Real Estate Investments acquired two multi-tenant shopping centers in separate transactions totaling $47 million.
The properties are the 228,139-square-foot Volusia Square shopping center in Daytona Beach, purchased from Retail Planning Corp. for $31 million, and the 97,931-square-foot Breakfast Point Marketplace in Panama City Beach, purchased from Columbia Properties for $16 million.
Volusia Square is 96 percent leased to a mix of national, regional and local tenants, including Hobby Lobby, hh gregg, TJ Maxx, Dollar Tree, Bealls Outlet and Pier 1 Imports.
Constructed in 2009, Breakfast Point Marketplace is 99 percent leased to a mix of national, regional and local tenants and anchored by Publix and Office Depot.
Tom Falatko, vice president of acquisitions, represented Cole in the Volusia Square transaction, with Brad Peterson of HFF representing the seller. Clint Marchuk, director of acquisitions, represented Cole in the Breakfast Point Marketplace transaction, with CB Richard Ellis’ Chris Decoufle, Cliff Taylor and Kevin Reavey representing the seller.
Other Notable Deals
Robert Horvath and Todd Tremblay of Marcus & Millichap Real Estate Investment Services, brokered the sale of a 14,827-square-foot Walgreens Pharmacy in Boston for $9.36 million from Stone Lion Allston LLC to GFL Group LLC. The sale works out to $632 per square foot and a cap rate of 7.21 percnet. The Walgreens has 23.5 years remaining on the base term with (50) one-year option periods. The terms were negotiated in April with a December closing.
Voit Real Estate Services directed the triple-net lease sales of a Rite Aid and CVS Pharmacy for a combined total consideration of $7.45 million. Both transactions were directed by Jim Casale of Voit’s San Diego office. Casale represented Danmar Enterprises in the purchase of a Rite Aid Pharmacy lease in Columbia, S.C., for $3.73 million from Sovereign Rite Aid, which was represented by Mb>Sperry Van Ness. Casale also represented Danmar in the sale of a CVS Pharmacy lease in Waco, Texas, for $3.73 million to PeeShee LLC, which was represented by Sperry Van Ness.
Linear Retail Properties LLC purchased 62-66 Charles Street, a single-story 3,342-square-foot retail building located in the heart of the historic Beacon Hill neighborhood of Boston, for $4.1 million. It was constructed in 1951 and for the last 20 years operated as a 7-Eleven convenience store. 7-Eleven sold the property to Linear Retail and the 7-Eleven store has been converted into an independently run convenience store named Charles Street Market. Adam Conviser of Dedham, Mass.-based Conviser Property Group was the sole broker in the transaction, representing 7-Eleven and procuring Linear Retail as the buyer.
RealtyLink LLC announced the sale of a 1.67-acre development consisting of a 4,500-square-foot IHOP built in 1992 and a 3,200-square-foot AT&T built in 2010 in Atlanta. IHOP is on a 25-year lease with rent bumps every 5 years and AT&T is on a 7-year lease with a rent bump after 5 years. The financed transaction closed escrow on Dec. 21 for $2.76 million. The buyer was a private investment fund out of Memphis, Tennessee.
X Team International announced that Nashville-based partner Baker Storey McDonald Properties Inc. purchased the 40,000-square-foot Belle Forest Shopping Center in Bellevue, Tenn., from an undisclosed seller for $2.5 million. Tenants currently include Blockbuster, Boost Fit Club and Alley Pub, among others.
Agree Realty Corp. acquired the fee interest in the land underlying a Walgreens store in Shelby Township, Mich., for $2.2 million.