Developers Diversified Realty Corp. closed an offering of 37,295,000 of its common shares at a price of $8.16 per share, raising more than $300 million in the process.
DDR intends to use the net proceeds from the offering to repay debt with short-term maturities and reduce balances on the Company's revolving credit facilities.
Morgan Stanley, J.P. Morgan, Goldman, Sachs & Co. and Wells Fargo Securities are the joint book-running managers for this offering. In addition, Citi, Deutsche Bank Securities, KeyBanc Capital Markets, Scotia Capital and UBS Investment Bank are senior co-managers, and PNC Capital Markets LLC, RBC Capital Markets, RBS, SunTrust Robinson Humphrey and The Williams Capital Group, L.P. are co-managers, for this offering. The underwriters have been granted a 30-day option to purchase up to an additional 5,594,250 common shares to cover over-allotments, if any.
Marcus & Millichap Arranges Two Deals
Marcus & Millichap Real Estate Investment Services announced the details of two recent retail deals.
The firm brokered the sale of a 45,000-square foot LA Fitness in Highland, Calif. The sales price of $9.2 million represents $205 per square foot. Chris Maling, a first vice president investments and a director of the firm’s net leased properties group in Los Angeles, and David Maling, a vice president investments and a director of the firm’s national retail group in Los Angeles, represented the seller, a real estate investment trust, and the buyer, an Arizona-based opportunity fund.
In a separate deal, the firm announced the sale of a 13,650-square foot Walgreens in Dripping Springs, Texas, according to Kent R. Williams, senior vice president and regional manager of the firm’s San Diego office. The asset commanded a sales price of $5.3 million.
Alvin Mansour, a senior vice president investments in Marcus & Millichap’s San Diego office, had the exclusive listing to market the property on behalf of the seller, a developer. Chris Gomes, an investment specialist in the Dallas office and Tim Speck, broker of record for Texas, assisted in closing this transaction.
HFF Arranges $14M Financing for Seattle Shopping Center
The Portland and New York offices of Holliday Fenoglio Fowler L.P. (HFF) arranged a $14 million financing for the 200,000-square-foot Pavilions Centre shopping center in Federal Way, Washington.
Working exclusively on behalf of Kimco Realty Corp., HFF director Casey Davidson and managing director Robert Delitsky secured a non-recourse fixed-rate loan through one of HFF’s life company correspondent lenders.
Other Notable Deals
Faris Lee Investments completed the sale of a Wells Fargo Bank building in Corona, Calif. for $2.6 million. Dennis Vaccaro, senior managing director, Faris Lee Investments and Richard Walter, president, Faris Lee Investments, represented the seller, Shops at Sycamore Creek LLC. The property closed at a 6.15 percent cap rate.
Hanley Investment Group Real Estate Advisors represented the seller in the sale of the fee-simple ownership in the land leased to a single-tenant NNN Red Robin Restaurant in Menifee, Calif. Edward B. Hanley and William B. Asher represented the seller, Donahue Schriber. The buyer, Lew 1st – Crenshaw Properties LLC was represented by James Kwon of Coldwell Banker Best Realty. The purchase price was $2.0 million.
W Financial provided a $1.8 million first mortgage bridge loan to an undisclosed borrower on a 18,000-square-foot retail property in the Jackson Heights section of Queens, N.Y.
(To have your deals included in our weekly roundup, please email releases to David Bodamer or Elaine Misonzhnik.)