Prudential Mortgage Capital Co. closed a $202 million loan for a national portfolio of 13 retail centers. The borrower is a joint venture between Regency Centers Corp and Global Retail Investors LLC. Global Retail Investors is a joint venture between an affiliate of First Washington Realty and CalPERS.
The portfolio includes 11 grocery-anchored retail centers, one grocery-anchored community center and one community center. Two of three properties in the Philadelphia area are built around Genuardi’s grocery stores, with the other around Acme Markets. In northern Virginia, Giant-Landover grocery stores form the hub for two of three properties, with the remaining center anchored by Shoppers Food Warehouse. Similarly, King Soopers grocery store anchors two properties in the Denver market. Also included in the portfolio are properties in northern New Jersey, Minneapolis, Baltimore, Seattle, Boulder, Colo.
Jaime Zadra of Prudential Mortgage Capital's Los Angeles office arranged the 10-year, fixed-rate loan.
Simon Buys Additional Stake in Houston Galleria
Simon Property Group paid $260 million, including the assumption of debt, to buy an additional 20 percent stake in the 2.4-million-square-foot Houston Galleria.
With the stake, Simon now is the majority owner and controls a 52 percent stake in the mall. It has been managing the property since 2002, when it initially bought a minority stake in the property.
Taubman Gets $82.5M Loan
Taubman Centers Inc. secured an $82.5 million financing of the Mall at Partridge Creek in Clinton Township, Mich. The financing replaces a $73.8 million construction loan Taubman had previously secured on the property.
The new nonrecourse commercial mortgage loan was originated by Goldman Sachs. It has a 10-year maturity, amortizing principal based on 30 years and bears an all-in interest rate of 6.25 percent.
This is the first financing for Taubman since April 2008, as the company had no loans maturing in 2009. Two additional financings, on Arizona Mills in Tempe, Ariz., and MacArthur Center in Norfolk, Va., are anticipated to be completed in the third quarter of 2010.
The Mall at Partridge Creek opened in October 2007 and is anchored by Nordstrom, Parisian and MJR/Partridge Creek Digital Cinema 14.
Excel Trust Spends $71.7M to Acquires Five Properties
Excel Trust Inc. has acquired five additional properties for a combined asset value of $71.7 million at an approximate cap rate of 8.5 percent. Excel Trust has now acquired a total of fifteen properties since its initial public offering on April 23.
The five properties included the 334,027-square-foot Plaza at Rockwall in Rockwall, Texas; a 171,069-square-foot Lowe’s in Shippensburg, Pa.; a 14,820-square-foot Walgreens in Beckley, W.Va.; the 45,013-square-foot Merchants Central Shopping Center in Milledgeville, Ga.; and a 12.-acre land parcel adjacent to the Plaza at Rockwall.
Grubb & Ellis Facilitates REO Sale
Grubb & Ellis Co. represented both parties in the $22 million all-cash sale of the 220,000-square-foot Kaleidoscope Retail Center in Mission Viejo, Calif. Westport Capital Partners LLC purchased the center from C-III Asset Management LLC, the special servicer of the property
Dixie Walker, executive vice president, financial services asset management, facilitated the REO.
The property was built in 2000 and is currently 62 percent leased with tenants including Regal Theatres, Buffalo Wild Wings, Islands Restaurant, Burke Williams Salon and Day Spa, Riptide Restaurant, The Derby Restaurant and Piano Bar and Laser Quest.
Westport Capital Partners named Mark Baziak, senior vice president, and Terrison Quinn, associate, also of Grubb & Ellis’ Retail Group, as the leasing agents of the property.
Marcus & Millichap Arranges Two Deals
Marcus & Millichap Real Estate Investment Services brokered two transactions worth a combined $21.7 million.
In the first deal, Garrette Matlock, a senior vice president investments and a senior director of the firm’s national retail group in Denver, and Jon Hendrickson, a senior associate, brokered the sale of the 118,673-square-foot Mission Commons Shopping Center in Westminster, Colo. The sales price of $14.5 million represents $122 per square foot.
Mission Commons is anchored by a Sears’s Outlet store, Bally Total Fitness and Big 5 Sports. The property includes two inline strip buildings divided into 24 tenant spaces and a freestanding Long John Silver’s on a pad.
In a separate deal, Tim Giambrone, vice president - investments and director of the firm’s national retail group in Atlanta, represented both the seller and the buyer in the $7.2 million sale of a 123,948-square-foot fee simple Lowe’s Home Improvement Center in Gainesville, Ga.
The seller was, V&V Real Estate LLC, a private investor located in Ohio and the buyer, a local real estate investor based in Atlanta. The closing price represents $58.09 per square foot and a cap rate of 9.22 percent. The lease had a primary term of 20 years with less than 4 years remaining.
Phillips Edison Acquires Johnson Creek
Phillips Edison & Co.’s Fund IV acquired the 106,709-square-foot Johnson Creek shopping center in Clackamas, Ore., in an all-cash deal.
The center is anchored by Trader Joe's, Walgreens and Wholesale Sports. Johnson Creek is Phillips Edison's seventh acquisition in Oregon and the eighth property in the $300 million Phillips Edison Shopping Center Fund IV portfolio. The fund focuses on acquiring value-add grocery-anchored assets in growth markets.
DDR Sells Three Former Mervyn’s
Developers Diversified Realty Corp. sold three former Mervyn's locations infor an undisclosed price.
The recently sold former Mervyn's locations are an 88,223-square-foot location at Westfield Solano Shopping Center in Fairfield, a 79,808-square-foot site at the Westfield Eastland Shopping Center in West Covina and a 75,207-square-foot location at Southland Plaza Shopping Center in San Diego.
Since being returned to the company, Developers Diversified has closed or has leasing activity on nearly 70 percent of the Mervyn’s portfolio, with retailers such as Kohl's, Forever 21, Walmart, Dick's Sporting Goods, Sprouts Farmers Market, buybuy BABY, Hobby Lobby and Burlington Coat Factory.
Other Notable Deals
ING Clarion Partners and joint venture partner Metropolitan Pacific Capital acquired the 52,450-square-foot Criterion on Third mixed-use property in Santa Monica, Calif., for an undisclosed price. The property was acquired on behalf of ING Clarion Development Ventures III, a closed-end fund advised by ING Clarion Partners. Equity and acquisition financing was arranged by Dan Horwitz of the Daniel Horwitz Co.
Jones Lang LaSalle was selected as exclusive leasing and managing agent for the 160,000-square-foot Calhoun Square shopping center in Minneapolis. Todd Karlen of Jones Lang LaSalle will direct leasing efforts at Calhoun Square while Ken Seifert leads the management team.
Robert K. Futterman & Associates (RKF) completed the sale of the 5,686-square-foot retail condominium at 8 West 19th Street. The asset was sold for $2.7 million. RKF Directors Brian Segall and David Alani, along with analyst Jonathan Butwin of the firm’s investment sales division, RKF Investment Sales & Advisory Services, represented both the buyer, 8 West 19 Retail LLC, and seller, Bennco Properties LLC, in this transaction.
Hanley Investment Group Real Estate Advisors’ Edward B. Hanley and William B. Asher represented the seller in the $2.3 million sale of the fee-simple ownership in the land leased to a single-tenant triple net lease Red Robin Restaurant in Apple Valley, Calif. The buyer, a private investor from Corona, Calif., was represented by James Kwon of Coldwell Banker Best Realty in Fullerton, Calif. The seller was WRI Alliance Riley Venture III.
RCG Ventures purchased the 123,948-square-foot Lakeshore Crossing shopping center in Gainesville, Ga., for an undisclosed price.