As the industry rang in the New Year, Holliday Fenoglio Fowler L.P. (HFF) announced three retail loans arranged by a few of theintermediary’s offices.
HFF’s Washington office arranged a $23 million redevelopment loan for the 98,848-square-foot Olney Town Center retail property in Olney, Maryland. HFF managing director Mark Remington worked exclusively on behalf of the borrower, an affiliate of Carl M. Freeman Cos., to secure the three-year adjustable-rate loan with RBS Citizens Bank.
Carl M. Freeman Cos. will renovate and expand the center in work that is slated to be completed in the second quarter of 2011. When finished, the expanded center will include 110,941 square feet of space with Harris Teeter as the new anchor tenant. Other tenants in the center will include PNC Bank, Chevy Chase Bank, Subway and Green Turtle Restaurant.
In a second, the Boston office of HFF arranged an $11.6 million refinancing for the 54,878-square-foot CityPlace retail component of the Massachusetts State Transportation Building in Boston’s theater district.
HFF senior managing director Fred Wittmann and senior real estate analyst Robyn King placed the seven-year, fixed-rate loan with Ocean Bank on behalf of the borrower Boylston Properties Company Inc., a division of People’s United Bank. Loan proceeds are refinancing existing debt on the property and funding capital improvements to the property.
CityPlace is currently 95 percent leased to tenants including Emerson College, Rock Bottom Brewery, P.F. Chang’s China Bistro and Vapiano.
In a third deal, the Boston office of HFF arranged a $5.45 million refinancing for Boylston on the 34,730-square-foot Town Green at Wilton Center in Wilton, Conn.
Wittmann and HFF senior real estate analyst Lauren O’Neil secured the seven-year, fixed-rate loan through the Ocean Bank division of People’s United Bank. The property is fully occupied.
Inland buys Grafton Commons for $37M
Continental Properties Co. closed on the sale of a 237,565-square-foot portion of the 389,000-square-foot Grafton Commons Shopping Center for $37 million to The Inland Real Estate Group of Cos. Inc.
Continental Properties developed the property in 2007 for about $50 million. Inland acquired a portion of the property and more than 28 acres of land, paying about $156 per square foot.
A 152,000-square-foot Costco and 21 acres of parking and vacant land were not included in the transaction.
Pennsylvania Center Trades for $13.6M
Marcus & Millichap Real EstateServices arranged the sale of the 67,315-square-foot Bensalem Crossing grocery-anchored shopping center in Bensalem, Pa., developed, leased and managed by The Goldenberg Group.
The sales price of $13.6 million represents $202 per square foot or a cap rate of 7.85 percent.
Brad Nathanson, a vice president of investments and senior director in the Philadelphia office of Marcus & Millichap’s national retail group, represented the seller, Bensalem Crossing Associates. Kevin McCrann, a senior associate, and Thomas McConnell, anspecialist, in the firm’s New Jersey office, represented the buyer, a New Jersey-based private partnership.
The Goldenberg Group will continue to manage the center on behalf of the new owners.
Other Notable Deals
Baker Storey McDonald Properties Inc. purchased the 127,000-square-foot Suburban Plaza in Knoxville, Tenn. from Centro Properties Group for $10 million.
Tony D’Ambrosio and Joe Montgomery of Colliers Spectrum Cauble represented the seller, Centro Properties Group. Financing for the acquisition was arranged by Stephen Brink at First Southern Mortgage through ORNL Federal Credit Union.
The Rappaport Cos. has been selected to provide property management and leasing services for the 87,000-square-foot Hungarybrook Shopping Center in Richmond, Va.
Marcus & Millichap Capital Corp. arranged a $4.6 million loan for the acquisition of a 14,000-square-foot Walgreens drugstore in Lakewood, Ohio. Ian Harrison, an associate director in the firm’s Columbus office, arranged the financing for the property. The loan has a loan-to-value of 83.1 percent and a 6.57 percent interest rate, fixed over 23 years.
Larken Associates, a leading developer, owner and manager of retail shopping and office centers in New Jersey and Pennsylvania, announced the acquisition of the 230,284-square-foot Tilghman Square neighborhood shopping center in Allentown, Pa., for an undisclosed price. The 35-acre center is currently 96 percent leased with 36 stores.
Costa Mesa-based shopping center developer Donahue Schriber announced the purchase of Pardee Homes’ interest in its 272,567-square-foot Del Mar Highlands Town Center in San Diego for an undisclosed price. Donahue Schriber has formed a joint venture partnership with the Canada Pension Plan Investment Board to effectuate the transaction.
Regency Centers closed on the sale of a 76,483-square-foot former Mervyns store location with space leased to Best Buy and Sports Authority within the Tanasbourne Town Center in Hillsboro, Ore. to an affiliate of The Inland Real Estate Group of Cos..