Cole Real Estate Investments formed a joint venture with RED Development for future acquisition opportunities, recapitalizations and note purchases in the retail real estate sector. The venture’s primary acquisition targets will be high-quality, multi-tenant retail properties, including power centers and grocery-anchored shopping centers, with upside potential through the implementation of asset management and capital improvement programs to reposition the assets. The venture will target investments in the $15 million to $100 million range primarily in the Midwest and Western United States.
“Cole’s partnership with RED will enhance our access to core-plus and value-added retail opportunities that continue to meet our disciplined acquisition criteria,” said Charles Vogel, Cole’s senior vice president of retail real estate joint ventures, in a statement. “This programmatic joint venture provides the opportunity to create value through a combination of real estate expertise and access to capital. With an exceptional partner in RED, we will be able to expand our portfolio of high-quality multi-tenant retail properties.”
In a separate announcement, Cole Real Estate Investments acquired five multi-tenant retail centers in Arizona, Colorado and California for a total purchase price of $58.2 million. The acquisitions were completed through separate transactions. The properties included:
- Kohl’s Parkway Plaza in Napa, Calif. Kohl’s is the anchor tenant at the center. Cole paid $19.8 million for the asset;
- Denver West Plaza in Lakewood, Colo. Best Buy and Office Depot serve as anchors for the center. Cole paid $14 million for the property;
- The Plaza at Power Marketplace in Queen Creek, Ariz. LA Fitness serves as the anchor for the center. Cole Real Estate paid $13.3 million for the assets;
- Highlands Ranch Marketplace in Highland Ranch, Colo. Staples and Ross Dress for Less serve as anchors for the center. Cole paid $6.3 million;
- Kingman Gateway in Kingman, Ariz. PetSmart and Ross Dress for Less anchor the property. Cole paid $4.8 million for it.
Weingarten Amends, Extends $500M Unsecured Revolving Credit Facility
Weingarten Realty Investors closed on an amended and extended four-year $500 million unsecured revolving credit facility. The facility will mature in September 2015, with a provision for a one-year extension. The interest rate on the loan will be at a margin over LIBOR, plus a facility fee. The borrowing margin improved to LIBOR plus 125 basis points, a decrease of 150 basis points compared to the previous margin of 275 basis points. In addition, the facility fee has been reduced to 25 basis points from the previous 50. Both the borrowing margin and the facility fee are priced off a grid connected to the company’s senior unsecured credit ratings.
The facility also contains a competitive bid option that will allow Weingarten to request bids for up to $250 million, and an accordion feature, which can increase the facility amount up to $700 million. Weingarten plans to use the proceeds from the facility to fund acquisitions and new development activities, and for general corporate purposes.
J.P. Morgan Securities LLC and Merrill Lynch, Pierce, Fenner & Smith Inc. served as joint book-runners and co-arrangers on the transaction. JPMorgan Chase Bank N.A. served as an administration agent and Bank of America N.A. as a syndication agent. Wells Fargo Bank National Association, PNC Bank National Association and Regions Bank were documentation agents. Royal Bank of Canada served as co-documentation agent, while Compass Bank, U.S. Bank National Association and The Bank of Nova Scotia were managing agents. Other lenders involved in the transaction included Capital One N.A.Northern Trust Co. and Sumitomo Mitsui Banking Corp.
W. P. Carey Affiliate Invests in Italian Metro Stores
CPA:17-Global, a publicly-held non-traded REIT affiliate of W. P. Carey & Co. LLC, acquired substantially all of the economic and voting interests in a fund that owns 20 stores leased to Metro Cash & Carry Italia S.p.A. (Metro Italy) for approximately $400 million. BNP Paribas Real Estate Investment SGR p.A. manages the fund.
Metro AG has guaranteed Metro Italy’s obligations under the leases. The 20 stores represent half of the retailer’s Italian portfolio and are located primarily in the middle and northern parts of the country.
“The transaction marks our first investment in Italy and continues to represent our interest in European acquisitions,” said W. P. Carey & Co. Ltd. President and Head of European Investment H. Cabot Lodge, III, in a statement. “We are delighted to be entering a new market and to be adding Metro AG to our list of long term obligors.”
Equity One Closes New $575M Unsecure Revolving Credit Facility
Equity One Inc. closed a $575 million unsecured revolving credit facility to replace its existing $400 million facility. The new facility features a four-year-term with a one-year extension option and can be increased to $800 million through an accordion feature. It will have an annual interest rate of LIBOR plus 155 basis points, subject to a pricing grid connected to the company’s credit ratings.
Wells Fargo Securities LLC and PNC Capital Markets LLC served as joint lead arrangers and joint book runners for the facility. Bank of America N.A., SunTrust Bank and U.S. Bank National Association acted as co-documentation agents. Other lenders participating in the facility included Barclays Bank PLC, BB&T, Citicorp N.A., Deutsche Bank Trust Company Americas, Israel Discount Bank of New York, JPMorgan Chase Bank N.A., Raymond James Bank,Royal Bank of Canada and TD Bank N.A.
CB Richard Ellis Negotiates Charlotte Area Sales
CB Richard Ellis negotiated the sale of Cotswold Village and Terraces at South Park for $85 million. Cotswold Village is a 262,553-square-foot class-A shopping center in Charlotte, N.C. Harris Teeter, Marshalls and PetSmart anchor the 50-year-old property. Specialty retailers at the center include Starbuck’s, Ulta, Toys & Co. and Bath & Body Works.
Terraces at SouthPark is a 28,658-square-foot specialty retail center in SouthPark, N.C. Sun Trust Bank and Kinko’s anchor the property, which was completed in 1999.
Casey Rosen and Mike Burkard, of CB Richard Ellis, represented the sellers, affiliates of Bell Partners Inc., in both transactions.
TNP Acquires California Shopping Center in $13.5M
Hesperia Main Street LLC sold Topaz Marketplace, a 53,259-square-foot grocery-anchored shopping center in Hesperia, Calif., to TNP Strategic Retail Trust Inc. for $13.5 million. The price works out to $253 per square foot. The property was completed in 2008 and houses Fresh & Easy, Da Vita Dialysis, Wood Grill Buffet, American General and Metro PCS, among other tenants. It is 100 percent leased.
Rich Walter and Nick Coo, of Faris Less Investments, represented both parties in the transaction. Faris Lee Capital Markets Group also packaged the offering with multiple finance options.
Other Notable Deals
American Real Estate Capital closed a $20 million loan on behalf of CNL Lifestyle Properties Inc. for the acquisition of Pacific Park in Santa Monica, Calif. Pacific Park is a two-acre amusement park on the Santa Monica Pier.
O’Connor/Wafra Retail Partners, a fund sponsored by O’Connor Capital Partners and Wafra Investment Advisory Group, acquired Baybrook Village, a 278,209-square-foot open-air retail center in Houston, Texas. Sports Authority, Ross and Toys ‘R’ Us anchor the property. Other tenants at Baybrook include PetSmart, Ulta, Jos. A. Bank and Jo-Ann Fabric & Crafts.
Regency Centers acquired Tech Ridge Center, a 187,529-square-foot neighborhood shopping center in Austin, Texas. H-E-B, Office Depot and Petco anchor the property. The center is currently 93 percent leased. It was completed in 2001.
Terramar Retail Centers LLC acquired Encinitas Village, a 183,675-square-foot neighborhood shopping center in Encinitas, Calif. from a private investment company. Major tenants at the center include a 43,400-square-foot Ralphs Grocery, a 25,473-square-foot CVS Drug and an 11,000-square-foot Trader Joe’s. The center was upgraded in 2008 with new landscaping, improved circulation and new patio seating areas. Pete Bethea, of Cushman & Wakefield, represented the seller in the transaction.
Edens & Avant purchased Union Planters Plaza, a 155,000-square-foot grocery-anchored shopping center in Fort Lauderdale, Fla. Whole Foods anchors the property, which was completed in 1989 and expanded in 2000. In November, Dick’s Sporting Goods will open at the center. Union Planters Plaza will be the 25th retail center owned by Edens & Avant in Florida.
Grandbridge Real Estate Capital closed a $4.15 million first mortgage on Azalea Plaza, a 28,081-square-foot retail center in Ponte Vedra Beach, Fla. The CMBS loan featured an interest rate in the mid-five percent range, a 10-year term and a 30-year amortization schedule. Grandbridge’s Jacksonville, Fla. office originated this transaction.
Lee & Associates negotiated the sale of a 3,500-square-foot In-N-Out Burger restaurant in Poway, Calif. to Delta Gateway for $3 million. The transaction was closed at a 5 percent cap rate. In-N-Out has a 20-year triple net ground lease on the property, with more than 19 years still remaining on the initial lease term. Ryan Barr and Ryan Bennett, of Lee & Associates – Net Leased Group, represented the buyer in the transaction. The seller represented itself.
Coreland Cos. negotiated the sale of Huntington Beach Shopping Center in Huntington Beach, Calif. from Huntington Center LLC to Danforth Holdings for $2.55 million. The 10-acre center houses a Toys ‘R’ Us and a vacant Albertsons space. Matt Hammond, director of the retaildivision at Coreland, and Ben Terry, senior associate, represented the seller in the transaction. The buyer represented itself. The company also negotiated the sale of a 7,783-square-foot R&D building in Costa Mesa, Calif. from Cambridge Park Partners to Kerkorp LLC for $900,000. Steven Hogberg, senior vice president with Coreland, represented the seller in the transaction. Joe Winkelmann, of Voit Real Estate Services, represented the buyer.