During its third quarter earnings report, North Miami Beach, Fla.-based shopping center REIT Equity One Inc. (NYSE: EQY) said that it had closed on the acquisition of the 400,000-square-foot Westbury Plaza in Nassau County, N.Y. for approximately $103.7 million.
The property is anchored by Walmart and Costco. The purchase price reflects a capitalization rate of approximately 8 percent, according to Equity One.
“The acquisition of Westbury Plaza clearly was a very important event for Equity One,” Equity One President Tom Caputo said in a statement. “We are delighted we had the opportunity to purchase such a high quality asset as we enter the New York market. The property is extremely well located in arguably one of the best retail markets in the Northeast. The productivity of the tenants at Westbury Plaza is higher than any center I have seen in over 25 years in the acquisition business.”
Equity One acquired the property from Kimco Realty Corp. (NYSE: KIM) and DRA Advisors. The companies had put the property in the market this spring.
During Kimco's third quarter call, David Henry said of the transaction, "I think there were more than 20 bids on that particular shopping center, which is a high quality shopping center. So we've seen a substantial shift in the demand for high quality retail."
Cedar Renews Credit Facility
Cedar Shopping Centers Inc. (NYSE: CDR) closed on the renewal of a $265 million secured revolving credit facility. The facility is for a two-year period ending January 31, 2012, with a one-year extension at Cedar's option, subject to compliance and loan covenants. The facility also has an accordion feature permitting expansion to $400 million, subject to collateral and lender commitments.
The interest rate on the loan is LIBOR with a floor of 200 basis points plus 3.5 percent. The facility is presently secured by 35 properties. Cedar has drawn approximately $194 million under the facility. The renewed facility reflects a continuation of covenants under the existing facility, with certain adjustments, including, without limitation, availability measured by 67.5 percent of appraised values of stabilized properties included in the collateral pool.
Cedar has no further debt maturities in 2009 and approximately $9 million of maturities in 2010.
Joint lead arrangers for the credit facility are Bank of America Securities LLC, KeyBank National Association, Manufacturers and Traders Trust Co. and Regions Capital Markets. Other members of the syndicated facility include Raymond James Bank, FSB, Bank of Montreal, Citizens Bank of Pennsylvania and Royal Bank of Canada.
Regency Exercises Option on Macquarie Joint Venture
Regency Centers Corp. (NYSE: REG) notified Macquarie CountryWide that Regency will exercise its options to increase its interest in Macquarie CountryWide-Regency II LLC, an existing co-investment partnership between Global Retail Investors LLC Regency and MCW that currently owns 86 retail shopping centers across the country.
In July 2009, GRI, a joint venture between the California Public Employees' Retirement System and an affiliate of First Washington Realty Inc., agreed to purchase the majority of MCW's interest in MCW II. At that time, the partnership was valued at $1.7 billion. The first phase of the transaction, which involved the sale of 45 percent of the partnership to GRI, closed July 31, 2009. The second phase, in which an additional 15 percent of the partnership will be sold by MCW to GRI, is scheduled to close upon receipt of lender consents required under certain of the partnership’s property-level loans. As part of the agreement, Regency acquired two options to purchase the remainder of MCW's interest (up to 15 percent in total) at a 7.7 percent discount.
Other Notable Deals
Sun Capital Partners Inc. a private investment firm specializing in leveraged buyouts and investments in market-leading companies, announced that it sold Timothy’s Coffees of the World Inc. to Green Mountain Coffee Roasters Inc. for approximately $157 million in cash. Prior to that deal, Timothy’s sold its franchise restaurant operation to Bruegger’s Enterprises Inc., another Sun Capital portfolio company…. Wells Fargo & Co. provided a five-year, $63.5 million loan to refinance the Rentar Plaza mixed-use property in Middle Village, N.Y…. CB Richard Ellis (CBRE) negotiated the sale of the 93,372-square-foot Val Vista Towne Center in Gilbert, Ariz. for $13.2 million. Brokers in CBRE's Phoenix office represented the seller, Weingarten Realty Investors. The buyer was North American Development Group of Markham, Ontario, Canada…. Agree Realty Corp. closed a new $11.4 million secured financing. The loan is secured by mortgages on three of the company's retail properties located in Flint, Mich. The total includes three non-recourse, self-amortizing notes that mature in July, 2026. Each note bears interest at a fixed rate of 6.27 percent for the entire term of the loan…. Dockerty Romer & Co. arranged approximately $1.7 million in financing for an 18,000-square-foot studio and gallery in Miami. A first and second mortgage were arranged with a 6.75 percent interest rate, 5-year term and a 25-year amortization schedule on the first and a 5.39 percent interest rate, 6-month adjustable term and a 20-year amortization on the second….The Dallas office of Holliday Fenoglio Fowler L.P. (HFF) closed on the sale of the 159,502-square-foot Wolflin Village community center in Amarillo, Texas on behalf of the seller, Weingarten Realty Investors. Dunhill Partners Inc. purchased the property for an undisclosed amount free and clear of debt.
(To have your deals included in our weekly roundup, please email releases to David Bodamer or Elaine Misonzhnik.)