Cedar Realty Trust Inc. reached an agreement with RioCan Real Estate Investment Trust to exit the Cedar/RioCan joint venture that owns 22 retail properties.
The venture was split 20 percent/80 percent between Cedar and RioCan. As part of its exit, Cedar will acquire RioCan’s 80 percent ownership interest in Franklin Village shopping center in Franklin, Mass. for $60.1 million, including the assumption of an in-place $34.7 million mortgage; sell its 20 percent ownership interest in the remaining 21 properties for approximately $119.5 million, including in-place financings of $54.4 million and receive approximately $39 million in cash, as well as the distribution of its share of working capital in the joint venture.
All of the properties are valued at a 6.5 percent cap rate.
Cedar plans to use the cash proceeds to repay its mortgage obligations and will continue to manage the properties acquired by RioCan and receive management related fees, subject to a one-year management agreement.
“This transaction is significant in furthering our goal of maximizing long-term shareholder value,” said Cedar President and CEO Bruce Schanzer in a statement. “The benefits to our company include gaining 100 percent ownership of a premier New England grocery-anchored shopping center and generating cash for repayment of relatively high interest rate debt. Further, as a result of this transaction, as well as our previously announced non-core asset divestiture plan, Cedar will be a more streamlined and less levered company, with an attractive wholly-owned portfolio of primarily grocery-anchored shopping centers situated between Washington, D.C. and Boston.”
CBRE Helps Finance H&R REIT’s Purchase of Florida Shopping Center Portfolio
CBRE Capital Markets arranged a $46.475 million acquisition loan on behalf of H&R REIT for a six-property 400,000-sq.-ft. portfolio of grocery-anchored shopping centers in Florida. A life insurance company provided funding for the loan, which features a 3.35 percent interest rate, a seven-year term and a 25-year amortization schedule.
The portfolio includes the Corridors at Ponte Vedra in Ponte Vedra Beach, First Merritt Center in Merritt Island, Mandarin Oaks in Jacksonville; Publix at Holly Hill in Daytona; Publix at Summer Bay in Clermont and Regency Village in Orlando. Publix anchors five of the six centers. Fresh Market anchors the Corridors at Ponte Vedra.
Michael Strober, Amanda Valenti and Donald Jennewein, of CBRE, negotiated this transaction.
CorAmerica Buys California Community Center
CorAmerica Capital, in a joint venture with an institutional partner, purchased Nordhoff Plaza, a 254,000-sq.-ft. community center in Northridge, Calif. The purchase price, together with the value of capital improvements CorAmerica plans to undertake at the property, comes to approximately $90 million.
Best Buy, Bed Bath & Beyond, Total Wine & More, Fresh & Easy, Office Max and 24 Hour Fitness anchor the center. The shop space is currently 50 percent leased.
CorAmerica has retained Austin Bettar and Peter Kay, of Wilson Commercial, to handle leasing for the property.
Katz Properties Buys Philadelphia Shopping Center for $12.38M
Katz Properties acquired Plaza 352 Shopping Center, a 207,000-sq.-ft. supermarket-anchored shopping center in Brookhaven, Pa., for $12.375 million.
The center was completed in 1972. Pathmark anchors the center, with inline tenants including Verizon Wireless and Citizens Bank. Winslow Property Management, an affiliate of Katz Properties, will now provide leasing and property management services for the center.
Paul Rumley, of Metro Commercial Real Estate, represented both the buyer and the seller in the transaction.
Inland Mortgage Sells Stonewood Village in Georgia to Nightingale Properties for $11.6M
Inland Mortgage Capital Corp. sold Stonewood Village, a 101,615-sq.-ft. shopping center in Alpharetta, Ga., plus outparcels and additional land, to Nightingale Properties for $11.6 million.
Inland Mortgage Capital foreclosed on the property in 2009. It is currently 97 percent occupied, with tenants including Big Lots, Dover Saddlery, Natural Foods Warehouse, Queen of Hearts Antiques and Anytime Fitness.
Mark Joines and Drew Fleming, of Cassidy Turley, represented the seller in the transaction.
Fantini & Gorga Helps Finance CVS Acquisition in Dedham, Massachusetts
Fantini & Gorga arranged an $11.28 million acquisition loan on behalf of Lucy Dedham LLC, an affiliate of Micozzi Management Inc., for a freestanding CVS Pharmacy in Deadham, Mass.
The building was developed in 2009 and is located on a 2.46-acre site across the street from Legacy Place, a 675,000-sq.-ft. lifestyle center. CVS recently sublet a portion of its site to Sovereign Bank. Casimir Groblewski, of Fantini & Gorga, negotiated this transaction.
Other Notable Deals
The Boulder Group negotiated the sale of a 13,650-sq.-ft. triple net leased Walgreens in Chicago to a Midwest-based partnership for $7.5 million. The property was completed in 2004. Walgreens has 17 years remaining on its lease for the building. Randy Blankstein and Jimmy Goodman, of The Boulder Group, represented the seller in the transaction. The buyer represented itself. The Boulder Group also negotiated the sale of a 9,026-sq.-ft. triple net leased Dollar General store in Mooresville, N.C. to a private net leased investment fund for $1.47 million. The property was completed in 2011. Dollar General has 14 years remaining on its lease term. Randy Blankstein and Jimmy Goodman represented the seller in the transaction. The buyer represented itself.
Marcus & Millichap Capital Corp. arranged a $6.1 million acquisition loan for a 13,325-sq.-ft. Walgreens drugstore in Duluth, Mass. A national life insurance company provided funding for the loan, which features a fixed interest rate of 4.85 percent, a 25-year term, a 25-year amortization schedule and LTV of 65 percent. Dean Giannakopoulos, of Marcus & Millichap Capital, negotiated this transaction.
Baceline Investments LLC purchased North Town Center, a 41,652-sq.-ft. retail and office center in Saginaw, Texas for $4.2 million. The property was completed in 1984. It is currently 95 percent leased.
Caruso Affiliated signed an agreement with San Diego Gas & Electric for the purchase of a 48-acre land parcel along Cannon Road in Carlsbad, Calif. Caruso plans to use the parcel for future development.