Edens & Avant closed a new $150 million equity commitment from the State of Michigan Retirement System, New York State Teachers’ Retirement System and institutional investors advised by J.P. Morgan Asset Management.
This commitment, when combined with an existing equity commitment and other sources, including privately placed unsecured debt, brings the total capital raised by the company over the past 12 months to nearly $1 billion. Edens & Avant is a private REIT with a market-dominant grocery anchored portfolio of 124 properties concentrated in Boston, New York, Washington, D.C., Atlanta and Miami.
“This equity commitment demonstrates the continued support and confidence our blue-chip institutional investors place in Edens & Avant,” Edens & Avant CFO Jason Tompkins said in statement. “With nearly $1 billion of capital raised within the last year, we remain committed to maintaining a conservative, flexible balance sheet while continuing to focus on urban retail investments in major East Coast markets.”
Excel Trust Purchases Two Properties for $92M
Excel Trust Inc. has acquired two properties for approximately $92.1 million using a combination of cash and shares.
In the first deal, Excel Trust completed the acquisition of the 473,640-square-foot Gilroy Crossing in Gilroy, Calif., for $68.5 million. The current annual net operating income is approximately $5.3 million. The property is 99 percent leased and anchored by Target (non-owned), Kohl’s, Sports Authority, Ross Dress For Less, Bed Bath & Beyond, Michaels, and PetSmart. Excel Trust assumed the existing mortgage of approximately $48.0 million which bears interest at 5.01 percent.
In the second deal, Excel Trust acquired a 100,511-square-foot single-tenant net-leased property in San Diego occupied by Edwards Theater for approximately $23.6 million. The current annual net operating income is approximately $2.18 million. Excel Trust assumed the existing mortgage of approximately $12.4 million which bears interest at 6.74 percent. The purchase price, excluding assumed debt, was mostly paid in the form of operating partnership units initially valued at $14.00 per unit. These units can be exchanged for shares of the company’s common stock at a future date.
“We continue to pursue our strategy of sourcing well located, attractively priced real estate through off market transactions,” Excel Trust Chairman and CEO Gary Sabin said in a statement. “We are pleased to have closed our first property utilizing operating partnership units. Using units as currency offers significant tax advantages to sellers, which can often translate into better pricing for the company. This is an attractive way to preserve cash and fund acquisitions without incurring equity issuance costs.”
M&M Arranges $18.4M Sale
Marcus & Millichap Real Estate Investment Services brokered the sale of the 97,017-square-foot Promenade 23 Shopping Center in Seattle. The sales price of $18.4 million represents $189 per square foot.
Dino Christophilis, an associate vice president investments in the firm’s Seattle office, represented the buyer, Weingarten Realty Investors.
The center consists of Promenade North and Promenade South and is anchored by a freestanding Starbucks, a freestanding Walgreens and local food chain Red Apple Grocery.
Stan Johnson Co. Brokers CVS Portfolio Sale
Stan Johnson Co. completed the sale of a 10-property retail portfolio, 100 percent occupied by CVS pharmacies, to a Massachusetts-based private investor for $10.2 million.
The properties were encumbered by high leverage, zero cash flow structured financing that was assumed by the buyer. Encompassing more than 102,000 square feet, the retail properties are located in Connecticut, Kentucky (three locations), Massachusetts, Ohio (ten locations), South Carolina (ten locations) and Virginia.
David Clary with Stan Johnson represented the seller, a Texas-based private owner, as well as the buyer.
Inland Real Estate Corp. JV Acquires Grocery Store
Inland Real Estate Corp. announced that its joint venture with Inland Private Capital Corporation has acquired a 66,393-square-foot, single-tenant retail property located in the Chicago suburb of Arlington Heights, Ill. The property is leased to Mariano’s Fresh Market, Roundy’s Supermarkets Inc.’s newest grocery store concept.
The IRC-IPCC venture acquired the property in an all-cash transaction from a private developer for approximately $20.8 million, excluding closing costs and adjustments. The venture anticipates obtaining financing on the presently unencumbered property at leverage levels consistent with the company’s existing business plan. IRC expects to utilize net proceeds from the mortgage loan to repay advances made under its line of credit facility to acquire the property. IRC expects to earn acquisition and property management fees in accordance with the terms of its joint venture agreement with IPCC.
Other Notable Deals
CB Richard Ellis arranged the sale of 7,200-square-foot freestanding retail building occupied by AutoZone in Royal Palm Beach, Fla. The property was acquired by Abbassi Properties L.P. for $3.68 million. CBRE brokers Dave Donnellan, Todd Weintraub, Bill Strauss and Mark Drazek represented the seller, Southern Restaurant LLC. Autzone has a new 20-year lease absolute net lease on the property.
Faris Lee Investments completed the $3.1 million sale of the 28,452-square-foot Eagle Mountain Village Marketplace, a special servicer REO shopping center located in Fountain Hills, Ariz. Built in 2001, the center is 57 percent occupied and with tenants including Pei Wei Asian Diner, H&R Block, UPS Store, Edward Jones, World of Nails, Rural Metro, and VU Bistro. Fry’s Food is the anchor tenant but is not a part of the sale. David Wetta and Joe Compagno, managing directors in Faris Lee’s Phoenix office, represented the all-cash, 1031 exchange buyer in the transaction, Trabuco Hills 05 LLC from Irvine, Calif., as well as the REO seller, CW Capital a special servicing company. The center sold at an 8 percent cap rate on actual income.
Baceline Investments LLC purchased the 37,000-square-foot Fountain Village Shopping Center in DeSoto, Texas from a loan special servicer for $1.2 million, approximately 60 percent of the property's original loan value. The center and is only 25 percent occupied. Baceline intends to convert the property into medical office space.
Voit Real Estate Services completed the $800,000 sale of an 8,200 square-foot former retail space at the Cobblestone Square retail center in Chandler, Ariz. Darren Tappen of Voit Real Estate Services represented the seller, LNR Property LLC. The buyer, Cobblestone Square Services LLC, owns the shopping center in which the building pad is located, and was represented by Fred Buck of CPI in this transaction.
Old Road Realty LLC acquired a newly constructed and vacant 30,000-square-foot shopping center in Valencia, Calif., for an undisclosed price from First California Bank. Lee & Associates-LA North/Ventura represented both the buyer and seller in the deal. First California Bank had previously acquired the note on the property with its purchase of the original note holder, Western Commercial Bank.