Inland Real Estate Acquisitions Inc. and Inland Real Estate Corp. announced acquisitions of retail assets.
In the largest deal, Inland Real Estate Acquisitions Inc., announced today the acquisition of two shopping centers in Missouri and Tennessee for a combined total of approximately $74 million. The Shoppes at Branson Hills, a 348,700-sq.-ft. shopping center in Branson, Mo., was purchased for approximately $38.5 million. Hamilton Crossing, a 175,458-sq.-ft. shopping center located in Alcoa, Tenn., was purchased for approximately $35.5 million. Both properties were acquired on behalf of Inland Diversified Real Estate Trust, Inc.
Matt Tice, vice president of Inland Real Estate Acquisitions, facilitated the purchase of Shoppes at Branson Hills. Tenants at the center include Home Depot, Petco and Bed Bath & Beyond. The property is shadow-anchored by Target and Super Wal-Mart, which were not purchased. A Sam’s Club is scheduled to be built at the center in 2013, adding an additional shadow anchor.
Lou Quilici, senior vice president of Inland Real Estate Acquisitions, facilitated the purchase of Hamilton Crossing. The center’s tenant roster includes Dick’s Sporting Goods, Ross Dress for Less, PetSmart, Old Navy, Rue 21 and Michaels, and the property was 100 percent leased at closing.
In a separate deal, Inland Real Estate Corp. contributed $15 million to its joint venture with Inland Private Capital Corp. (IPCC) to acquire for an aggregate purchase price of $40.8 million, excluding closing costs and adjustments, two portfolios that include a total of seven single-tenant retail properties aggregating 95,630 sq. ft. of gross leasable area.
The IRC-IPCC joint venture acquired a portfolio of two free-standing stores net leased to CVS Pharmacy and one asset that is net leased to Walgreens, for a purchase price of $17.1 million. The venture also acquired for $23.7 million a second portfolio which includes one asset that is net leased to CVS, plus three properties that are net leased to Walgreens. The stores range in size from 12,900 to 14,490 sq. ft. of GLA and are located in seven states across the United States. Simultaneous with the closing, the IRC-IPCC joint venture placed loans totaling $25.8 million on the portfolios.
Finally, Inland Real Estate Corp. contributed $33.0 million to its joint venture with IPCC to acquire two retail properties in Wisconsin. The joint venture purchased a neighborhood shopping center anchored by a Pick ’n Save grocery located in the Village of Mt. Pleasant in southeast Wisconsin, for approximately $21.3 million, and a single-tenant property leased to Pick ’n Save in Sheboygan, Wisconsin, for approximately $11.7 million.
The Pick ’n Save-anchored shopping center totals 83,233 sq. ft. plus a Texas Roadhouse operating on a ground lease. The center is currently 98 percent leased and additional tenants include U.S. Cellular, Aspen Dental and Mattress Firm.
The freestanding 62,138-sq.-ft. Pick ’n Save grocery store, located in Sheboygan, opened in 2010, replacing an older store located nearby.
Rockwood Arranges Sale of Northgate Mall
Rockwood Real Estate Advisors arranged the sale of Northgate Mall in Cincinnati, Ohio on behalf of E3 Advisors, a court appointed receiver for $21.5 million.
Northgate Mall is a 915,956-sq.-ft. regional mall located in the Northwest quadrant of Cincinnati in Colerain Township. The purchaser is an affiliate of Tabani Group Inc., a Dallas-based company with holdings in 14 states, including shopping centers, development projects, hotels, and office buildings.
Northgate Mall was constructed in 1971/72 and expanded in 1991 with the addition of Macy’s and a two-level parking garage. The mall has undergone numerous renovations and upgrades, with the most recent improvements occurring in 2007 which included exterior and interior improvements, as well as the removal of the former JC Penney anchor building. A 180,260-sq.-ft. Sears and a vacant 203,062-sq.-ft. Dillard’s are separately owned, and the parcel that was formerly occupied by JC Penney is also separately owned. The collateral represented in this sale consists of 555,696 sq. ft. , which includes the 180,000-sq.-ft. Macy’s, 259,066 sq. ft. of in-line space, 50,177 sq. ft. comprised of Famous Labels and 43,391 sq. ft. of outparcel space.
Northgate Mall has been under the control of a court appointed receiver since 2009, and is considered to be distressed given the large vacancies and required capital necessary to stabilize the asset. Rockwood provided investors with a road map to stabilize the mall by identifying various new tenants, and by also presenting a plan to gain control of both the former JC Penney parcel and vacant Dillard’s box.
Other Notable Deals
Upland Real Estate Group Inc. announced the sale of a Walgreens Drugstore located in Minnesota. This Walgreens had approximately 22 years remaining on the lease and was sold for $5.28 million to a direct 1031 tax deferred exchange buyer. Keith A. Sturm, CCIM and Deborah K. Vannelli, CCIM of Upland exclusively represented the Seller.
Matthew Kohlhoss, vice president and Gary McGlynn, senior vice president/managing director of NorthMarq Capital’s Washington, D.C. regional office, arranged first mortgage refinancing of $4.6 million for Sun City Plaza, a 97,450-sq.-ft. retail shopping center in Sun City Center, Florida. Financing was based on 10-year term and a 25-year amortization schedule and was arranged for the borrower, Sun City, LLC, by NorthMarq through its correspondent relationship RiverSource.
A joint venture of O’Connor Capital Partners and Wafra Investment Advisory Group purchased an interest in The Promenade at Chenal, a 237,066-sq.-ft. open-air lifestyle center in Little Rock, Ark., through its O’Connor/Wafra Retail Partners fund. Tenants at the center include Apple, J. Crew, DSW, Nike and Anthropologie, among others. The partners also bought an interest in Phase II of Settlers Ridge, a 94,603-sq.-ft. open-air center in Pittsburgh, on behalf of O’Connor/RealVest Retail Holding Co. LLC. The center is 100 percent leased to tenants including Ross, Michael’s, Ulta, Lane Bryant and Shoe Carnival.
Center Management bought The Promenade at Waterside, a 67,000-sq.-ft. retail development in Oxford, Mich., from Beltway Capital Management for an undisclosed amount. Stokas Bieri Real Estate, a member of X Team international alliance, represented the buyer in the transaction. The seller represented itself. The property currently contains a 67,000-sq.-ft. specialty strip center, with the potential to develop another 57,000 sq. ft. of space.
Spence Hill Associates announced today that it has arranged $1.4 million of permanent financing for North Rock Plaza, a 9,300-sq.-ft. retail center in Warrenton, Va. Michael H. Trauberman, managing director of Spence Hill, arranged and negotiated the financing on an exclusive basis on behalf of a Falls Church-based commercial real estate investor. The loan was placed with a community bank, and refinanced an existing loan with a different bank. The 78 percent loan-to-value financing features a fixed interest rate of 4.375 percent, a five-year term with a five-year extension option, 25-year amortization, and the ability to prepay without penalty.