Miami Locally based Continental Real Estate Cos. won the management contract for PGA Commons, a 178,000-sq.-ft. retail, office and residential project in Palm Beach Gardens. The project will be completed in four phases. Phase I, which includes 40,000 sq. ft. of retail and office space and 31 town homes, is complete. Phases II and III will be ready for occupancy by 2002. The developer is Palm Beach, Fla.-based Channing Corp.
Allentown, Pa. New York-based DRA Advisors awarded Cleveland, Ohio-based Developers Diversified Realty (DDR) the exclusive management and leasing contract for Tilghman Square, a 234,157-sq.-ft. shopping center in Allentown.
DDR will receive management, leasing, development, outparcel and ancillary income fees relevant to operating the center for DRA Advisors. Anchor tenants for Tilghman Square include an AMC Theater and a Cottage Crafters. The center also features five outparcels and numerous in-line retailers, service providers and restaurants. DDR will work with DRA Advisors and the existing tenants to improve the tenant mix and operations at the center.
In a separate development, DDR completed its previously announced merger with American Industrial Properties following AIP shareholders' approval of the merger plan. The merger of DDR subsidiary DDR Transitory Sub into AIP provides DDR with complete ownership of AIP's 39 remaining properties. This portfolio includes 31 industrial properties, six office properties, two retail properties, and 23.7 acres of land. DDR owns and manages more than 240 shopping centers totaling approximately 53 million sq. ft. of real estate in 41 states.
Sales & Acquisitions
New York Locally based New Plan Excel Realty Trust took a major step toward becoming an exclusively retail-focused REIT by selling 53 apartment communities to a private investment group for around $380 million.
Proceeds of the sale to Houlihan-Parnes Realtors LLC and C.L.K. Management Corp. will be used to pay down outstanding debt, fund improvements at community and neighborhood shopping centers, and repurchase up to $125 million of preferred stock and public debt.
When the deal is finalized, New Plan Excel's portfolio will be dominated by 278 retail properties anchored by supermarkets and discount stores. New Plan Excel expects to complete the transaction by third quarter 2001.
Oakbrook, Ill. Locally based Inland Retail Real Estate Trust acquired three PETsMART stores in the Southeast for a total of $9.7 million.
The properties located in Daytona Beach, Fla.; Fredericksburg, Va.; and Chattanooga, Tenn. were acquired from Phoenix-based PETsMART Inc. The sale lease-back transaction adds a total of 78,301 sq. ft. to Inland Retail's portfolio. It now totals more than 3.5 million sq. ft. of GLA.
Norman, Okla. Oklahoma City-based Newport-Alameda LLC sold a 15,120-sq.-ft. retail property in Norman to Solana Sombra LLC, an Arizona-based investor, for $3 million. The property is leased to Walgreens on a 20-year net lease. Northbrook, Ill.-based The Boulder Group, a real estate investment brokerage firm, closed the deal.
West Windsor, N.J. Wayne, N.J-based Mainardi Management acquired Windsor Green shopping center in West Windsor from Boston-based AEW/National Re/sources. The $19.8 million deal was brokered by the financial services group at Cushman & Wakefield's East Rutherford office.
The 157,463-sq.-ft. center is located within a burgeoning retail hub. Anchor tenants at the center include Pathmark, Marshalls, Staples, Zany Brainy and Wendy's.
Pleasant Hill, Calif. San Diego, Calif.-based Burnham Pacific Properties Inc. sold Downtown Pleasant Hill, a 355,596-sq.-ft. shopping center in Pleasant Hill, for $62.4 million. The buyer was a joint venture comprised of Developers Diversified Realty, Coventry Real Estate Partners, and Prudential Real Estate Advisors.