Rouse Properties Inc. closed on a $78.75 million mortgage for Southland Center, a 900,000-sq.-ft. enclosed regional mall in Taylor, Mich. The non-recourse loan features a fixed 5.09 percent interest rate and a 10-year term.
Previously, the property was financed with the company’s term loan, at an interest rate of 6 percent. Rouse used approximately $58.5 million of proceeds from the transaction to pay down the mall’s allocation within the term loan. Approximately $11.7 million was used to pay the release allocation. After closing costs, the company received approximately $8.2 million in net proceeds from the new loan.
“The refinancing of Southland Center reflects our recent success in adding value to the mall, as we continue to revitalize and improve the shopping experience and the quality of the tenant base,” said Andrew Silberfein, president and CEO of Rouse, in a statement. “This lowers our cost of capital and continues to improve the company’s financial capacity and flexibility.”
Boulder Group Negotiates Sale of $68.7M Walgreens Portfolio
The Boulder Group negotiated the sale of a single tenant net leased Walgreens portfolio to a Midwest-based institutional investment firm for $68.7 million. The portfolio includes nine properties located in Connecticut, Massachusetts, New Hampshire and New Jersey.
The drugstores are located in towns including Berlin, Conn., Branford, Conn., Brockton, Mass., Dover, N.H., Derry, N.H., Melrose, Mass., Mount Ephraim, N.J., Ledgewood, N.J. and Sewell, N.J.
Randy Blankstein and Jimmy Goodman, of The Boulder Group, represented the seller in the transaction. The buyer represented itself.
Ruby Tuesday Sells Ten Restaurants for $22M
Ruby Tuesday Inc. sold 10 restaurants in Eastern U.S. for $22 million in three separate transactions.
The restaurants included a 4,645-sq.-ft. facility in Pooler, Ga., a 5,655-sq.-ft. facility in Rock Hill, S.C., a 4,658-sq.-ft. facility in North Charleston, S.C., a 4,959-sq.-ft. facility in Durham, N.C., a 5,097-sq.-ft. facility in Wytheville, Va., a 5,084-sq.-ft. facility in Harrisonburg, Va., a 4,959-sq.-ft. facility in Mechanicsville, Va., a 5,654-sq.-ft. facility in Alexandria, Va., a 5,039-sq.-ft. facility in Rehoboth Beach, Del., and a 5,744-sq.-ft. facility in Greensboro, N.C.
The properties feature 15-year triple net lease terms with annual rent increases.
Matt Mousavi, of Faris Lee Investments, represented the seller in the transaction.
“Net leased properties like these Ruby Tuesday assets are in high demand as they provide an investor the ability to achieve a stable and passive return on investment with minimal or no management responsibility,” said Mousavi in a statement. “The opportunity to achieve these strong returns, combined with the security of owning a hard asset, and in this case with a publicly traded company as the tenant, has attracted a diverse buyer base, many of which are first time single-tenant asset buyers.”
Laguna Pavilion Trades Hands for $18.75M
Arroyo & Co. negotiated the sale of Laguna Pavilion, a 70,554-sq.-ft. shopping center in Elk Grove, Calif., for $18.75 million, or $266 per sq. ft.
The property was 100 percent occupied at the time of the sale, to tenants including Party City, Pier 1, Tuesday Morning, FedEx, Sleep Train, Chili’s and Chipotle. David Kram, Pedro Arroyo and Reid Lewis, of Arroyo & Co., represented the seller in the transaction.
Besen & Associates Helps Sell Brooklyn Retail Building in $12M
Besen & Associates negotiated the sale of 172-174 Montague St., a two-story, 8,150-sq.-ft. retail building in Brooklyn, N.Y., to a local developer for $12 million.
Tenants at the property include a Hallmark store and a pub. The new owner plans to build a new project on the property.
David Davidson and Lynda Blumberg, of Besen & Associates, represented the seller, a private investor, in the transaction.
St. John Properties, Petrie Ross Joint Venture Buys Harrisburg Mall
A joint venture of St. John Properties Inc. and Petrie Ross Ventures acquired Harrisburg Mall, a 1-million-sq.-ft. regional mall in Harrisburg, Pa., from TD Bank.
The property is currently 70 percent leased. Macy’s, Bass Pro Shops and Great Escape Theatre anchor the center. Inline tenants include Aeropostale, Bath & Body Works, Claire’s, Victoria’s Secret and Radio Shack, among others.
Harrisburg Mall was completed in 1969. It underwent a $60 million renovation five years ago.
“This purchase increases the retail share of St. John Properties’ portfolio,” said St. John Properties Chairman and Founder Ed St. John in a statement. “We previously focused on providing necessity and convenience retail that supported our existing business communities, but this acquisition brings our company into the regional mall arena. We are adding staff to ensure the success of this project and we continue to seek retail opportunities across the country.”
Glimcher Group Buys Ohio Property
The Glimcher Group bought Garfield Mall, a 250,000-sq.-ft. community shopping center in Cleveland, Ohio. Marc’s, Big Lots and Save-A-Lot anchor the center.
The Glimcher Group plans to renovate the property and add new anchor tenants.
Other Notable Deals
Aztec Group Inc. secured a $3 million loan from BankUnited for a Walgreens pharmacy in Spring Hill, Fla. The non-recourse loan features a 10-year term, a 25-year amortization schedule and a 50 percent loan-to-value (LTV) ratio. Howard Taft and Charles Penan, of Aztec Group, negotiated this transaction.
RealtyLink LLC negotiated the sales of three retail properties in Southeastern U.S. for approximately $9.3 million in total. The transactions included the sale of a 32,233-sq.-ft. building occupied by Michaels and Ulta to a private investor for $5.9 million, the sale of a 4,900-sq.-ft. building occupied by Verizon Wireless in Winston-Salem, N.C. for $2.6 million, and the sale of a 2,250-sq.-ft. building occupied by RadioShack in Anderson, S.C. for $756,000.
MCS Investments Inc. sold its stake in Silver Sands Outlet Mall, a 450,000-sq.-ft. outlet center in Destin, Fla., to Simon Property Group for an undisclosed amount. The center generates annual sales exceeding $180 million.
Mid-America Real Estate Corp. negotiated the sale of Marion Towne Centre, a 426,905-sq.-ft. enclosed regional mall in Marion, Ohio. Elder-Beerman and JoAnn Fabrics anchor the property. Other tenants include Dollar General, Wolf Bros Supply and House of Hunan. Ben Wineman, of Mid-America Real Estate, along with Mike Paolucci and Hunter Whitten, of Select Strategies Realty, represented the seller in the transaction. The buyer represented itself.
Grand Openings Inc. bought a 130,000-sq.-ft. former Sam’s Club property in Dallas from Wal-Mart Realty Co. Dan Spike, of Henry S. Miller, represented the buyer in the transaction. Cody Persyn, of CB Richard Ellis—Houston, represented the seller.
Newmark Grubb Knight Frank Capital Group negotiated the sale of a 43,800-sq.-ft. retail building in Houston to an Australian investor for an undisclosed price. In the past the building housed a Toys ‘R’ Us store, but Newmark Grubb Knight Frank’s Michael Zatopek and Chris Hansen redeveloped it into a multi-tenant facility. Tenants at the property now include Big Lots, E. Star Chinese Buffet and Sushi Bar and Chase Bank.
Endeavor Real Estate Group and LYND secured equity from an institutional investor advised by L&B Realty Advisors LLP for 3 eleven Bowie, a mixed-use project in Austin, Texas. When completed, the project will include 359 rental apartment units, 42,000 sq. ft. of office space and 3,000 sq. ft. of street level retail. The terms of the transaction were not disclosed.