Hartford, Conn.-based Hutensky Capital Partners has purchased a general partnership interest in Woodmore Towne Centre, a $200 million mixed-use development underin Glenarden, Md.
The Woodmore project features approximately 750,000 square feet of retail space that is 69 percent pre-leased including to anchors Costco, Wegman's, JC Penney and Best Buy. Phase I will open this fall with a second phase opening in spring 2011. The project also includes fully entitled land for approximately one million square feet of office space, over one thousand residential units as well as two hospitality outparcels.
Hutensky will share general partnership duties with an affiliate of Petrie Ross Ventures, who will lead the development and leasing effort. An affiliate of Prudential Insurance Co. continues as a major investor in the project.
"Great project, great real estate and great partners made this an easy investment decision", said HCP Managing Partner Brad Hutensky. "We were also attracted by the fact that we felt the retail component of this project was really filling an unmet need for quality retail space in Prince George's County."
Kimco Preps Preferred Share Offering
Kimco Realty Corp. announced an offering of 7 million depositary shares, each representing a 1/100 fractional interest in a share of the company’s 6.90 percent Class H Cumulative Redeemable Preferred Stock, $1.00 par value per share.
These depositary shares, priced at $25.00, entitle holders to a 6.90 percent cumulative dividend, or $1.725 per annum, are not convertible into common stock and are redeemable at par at the option of the company on and after August 30, 2015. The preferred stock issuance is rated BBB- by both S&P and Fitch with a Baa2 rating by Moody's. The net proceeds received from the offering will be used to repay mortgage loans in the aggregate principal amount of approximately $150 million with interest rates from 6.75 percent to 7.87 percent per annum and with maturities from May 2011 to April 2013 and for general corporate purposes.
Banc of America Securities LLC, Morgan Stanley & Co. Inc., UBS Securities LLC and Wells Fargo Securities LLC are the joint book-running managers. Morgan Keegan & Co. Inc., Piper Jaffray & Co., RBC Capital Markets Corp. and Stifel, Nicolaus & Co. Inc. are the co-managers for the offering.
The offering is expected to be completed on August 30, 2010, and is subject to customary closing conditions.
Marcus & MIllichap$53M Community Center Sale
Marcus & Millichap Real Estate Investment Services brokered the $53 million sale of the 356,000-square-foot Exeter Commons grocery-anchored community center located in Reading, Pa. The sales price works out to approximately $149 per square foot, or a cap rate of 7.75 percent.
Brad Nathanson, a vice president of investments and senior director of the firm’s National Retail Group in Philadelphia, represented the seller, Exeter JV Associates LP. Nathanson also represented the buyer, Cedar-Exeter Commons LLC.
Mid-America Closes on Sale of Three Centers
Mid-America Real Estate Corp.s investment sales group announced the recent sale of three Midwest shopping centers in separate transactions that took place over a two-week period, totaling $25 million and containing 350,000 square feet of retail space. The centers are Liberty Square in Wauconda, Ill., Springboro Plaza in Springboro, Ohio and Roseland Shopping Center in Shelby Township, Mich.
The 107,369-square-foot Liberty Square sold for $15.2 million in an all cash transaction to Ramco-Gershenson Properties Trust. The seller was Fritz Duda Co. Ben Wineman, Joe Girardi and Stan Nitzberg of Mid-America were the exclusive representatives of the seller in the transaction, while the buyer was self-represented. The center anchored by Jewel-Osco and other tenants include National City Bank, KFC, Subway, United States Postal Service, Hallmark, Fantastic Sam's, Blockbuster Video and GNC.
The 154,034-square-foot Springboro Plaza sold for $7.1 million to the Equity Investment Group d/b/a EIG Springboro Plaza LLC. The seller was Inland Real Estate Corp. Rick Drogosz and Ben Wineman of Mid-America represented the seller in the transaction, along with Amy Holter of Anchor Associates. The buyer was self-represented. The center is anchored by Kroger and Big K-Mart. Springboro Plaza is 100 percent occupied.
The 92,515-square-foot Roseland Shopping Center was a lender-owned property sold for $3.5 million to a suburban Detroit-based private investment group. Ben Wineman of Mid-America, in conjunction with Daniel Stern and Richard Kerwin of Lormax Properties, represented the seller.
Hanley Investment Group Sells Alabama Property
Kevin T. Fryman of Hanley Investment Group Real Estate Advisors represented the seller in the sale of the 67,325-square-foot Trussville Marketplace grocery-anchored shopping center in the Birmingham suburb of Trussville, Ala. The purchase price was not disclosed.
Tenants include Winn Dixie, Dollar Tree, Domino’s Pizza, Great Clips and The UPS Store. The property was built in 1998 and was 98 percent occupied at the time of sale.
The seller was NC/Trussville LLC. The buyer was a private investor in Newport Beach, Calif.