Rouse Properties Inc. purchased Grand Traverse Mall, a 589,000-sq.-ft. enclosed regional mall in Traverse City, Mich. for approximately $66 million. The purchase price included cash payments for closing costs, required escrow reserves and the assumption of a restructured and discounted $62 million loan. The five-year non-recourse loan carries a 5.02 percent interest rate.
The deal marks the first acquisition for Rouse Properties since it became a publicly-traded mall REIT in January of this year.
Grand Traverse Mall opened in 1992. Macy’s, JC Penney and Target anchor the property. The center is currently 85 percent leased with in-line tenants reporting sales of approximately $300 per sq. ft. Grand Traverse Mall is the only enclosed mall within a 100-mile radius. It serves 22 counties with more than 400,000 people.
“Acquiring Grand Traverse Mall is an excellent example of our long-term strategy of owning and managing dominant and protected regional enclosed malls in secondary markets,” said Rouse President and CEO Andrew Silberfein in a statement. “This asset is not only being acquired at an attractive cap rate, but also represents an exciting opportunity to improve the tenant composition, occupancy levels and overall economics of the mall through an aggressive leasing, management and marketing program by Rouse’s dedicated management team.”
Milan Capital Buys Santa Fe Springs Promenade in $23M Deal
Milan Capital Management purchased Santa Fe Springs Promenade, a 114,629-sq.-ft. grocery-anchored shopping center in Santa Fe Springs, Calif., from F. J. Hanshaw Properties for $23 million.
The center was built in stages from the mid-1960s through the 1990s. Tenants at the property currently include Jack in the Box, Bank of America, Yoshinoya, KFC/Taco Bell and Santa Fe Springs Florist. Jax Market anchors the center. Santa Fe Springs Promenade was more than 90 percent occupied at close of escrow.
George Prince, of Prince Commercial Real Estate Services, represented both the buyer and the seller in the transaction. Prince Commercial will also help the new ownership reposition the property and turn the pad buildings into single-tenant net leased investment opportunities.
Phillips Edison—ARC Joint Venture Buys Food-Lion Anchored Centers for $11.6M
PECO-ARC Institutional Joint Venture I LP, a joint venture of Phillips Edison—ARC Shopping Center REIT Inc., acquired two Food Lion-anchored shopping centers in North Carolina for approximately $11.6 million.
Westin Centre is a 66,890-sq.-ft. property located in Fayetteville. The center is 100 percent occupied, with tenants including CVS, Family Dollar, Subway and Rent-A-Center.
Tramway Crossing is a 62,382-sq.-ft. center in Sanford. In addition to Food Lion, the property houses CVS, Family Dollar and H&R Block. It is currently 95.5 percent occupied.
Other Notable Deals
Heslin Becker Properties sold a Walgreens in Downey, Calif. to Downey Property Investments LLC for $8.1 million. Heslin Becker acquired a vacant industrial park on the site in April 2010 and developed a Walgreens there.
Lubert-Adler Management West Inc. sold a 59,283-sq.-ft. Hobby Lobby in Visalia, Calif. to a private investor for $5.272 million in an all-cash transaction. The store serves as an anchor to Sequoia Mall. It comes with an opportunity to develop an outparcel containing up to 5,000 sq. ft. of rentable space. Donald MacLellan and Richard Walter, of Faris Lee Investments, represented the seller in the transaction. Dennis Vaccaro, also of Faris Lee, represented the buyer.
Hanley Investment Group Real Estate Advisors negotiated the sale of a single-tenant triple-net leased La Barca Restaurantes in Pico Rivera, Calif. for $1.4 million. The deal closed at a cap rate of 6.5 percent. La Barca Restaurantes contains 3,664 sq. ft. of space. It has seven years remaining on its lease. Kevin T. Fryman, of Hanley Investment Group, represented the seller in the transaction. Vince Kagawan, of Pinnacle Real Estate Inc., represented the buyer.
Hamstra Builders Inc. sold Monticello Plaza, a 189,330-sq.-ft. grocery-anchored shopping center in Monticello, Ind. for an undisclosed amount. The center was completed in 1979. Kroger and Rural King anchor the property. Other tenants at the center include Pizza Hut, Ace Hardware, Standard Auto and King Buffet. David Weber and Nathan Whalen, of Marcus & Millichap Real Estate Investment Services, represented the seller in the transaction. Michael Wernke represented the buyer.