CBL & Associates Properties Inc. acquired a 75 percent interest in The Outlet Shoppes at El Paso in El Paso, Texas and a 50 percent interest in The Outlet Shoppes at Gettysburg in Gettysburg, Pa. from Horizon Group Properties and its affiliates for $108.7 million. The purchase price included $38.2 million in cash, plus the assumption of $70.5 million in debt.
The Outlet Shoppes at El Paso is a 378,000-sq.-ft. outlet center featuring more than 80 stores. As of December, the center was 99.6 percent occupied, with tenants including Brooks Brothers, Coach, Nike, Tommy Hilfiger, Banana Republic and Kenneth Cole, among others.
The Outlet Shoppes at Gettysburg is a 250,000-sq.-ft. outlet center featuring more than 70 stores. As of December, the center was 98.2 percent occupies. Tenants at the property include Village Stadium 10 Cinema, Brooks Brothers, Tommy Hilfiger, Under Armour and Old Navy.
“This acquisition allows us to grow our presence in the outlet center industry by investing in two established and successful centers,” said CBL President and CEO Stephen Lebovitz in a statement. “With our expanded presence, outlet centers will provide an increasing source of growth for the CBL portfolio.”
Other Notable Deals
Halpern Enterprises Inc. purchased Rock Hill Crossing, a 50,000-sq.-ft. retail center in Rock Hill, S.C., from Bright-Meyers Rock Hill L.P. for $8.073 million in an all-cash transaction. The center is fully occupied, with tenants including Dollar Tree, GNC, Verizon, T-Mobile, Shoe Show and Sports Clips. Wal-Mart Supercenter shadow anchors the property. Halpern Enterprises represented itself in the transaction. Zack Taylor and Don McMinn, of Marcus & Millichap Real Estate Investment Services, represented the seller.
A Pizza Hut franchisee sold three free-standing Pizza Hut restaurants in the greater Phoenix market to private buyers in three separate all-cash transactions totaling $3.55 million. The properties included 4708 South 48th St. in Phoenix, a 3,752-sq.-ft. building that sold for $1.629 million at a cap rate of 6.9 percent; 2056 E. Baseline Road in Mesa, a 2,631-sq.-ft. building that sold for $1.18 million at a cap rate of 7.2 percent; and 808 West Broadway Road in Tempe, a 1,409-sq.-ft. building that sold for $800,000 at a cap rate of 7 percent. The properties came with 15- to 20-year leases. Dennis Vaccaro and Matthew Mousavi, of Faris Lee Investments, represented the seller in the transaction.
Interior Illusions Inc. acquired a 5,700-sq.-ft. retail building at 7335 Santa Monica Blvd. from VIA Lending Co. LLC/KAR Properties Inc. for $2.385 million. The buyer has been occupying the building for the past year. Trevor Belden, of Lee & Associates-LA North/Ventura Inc., along with Jay Martinez, of J. Martin & Associates-KW Commercial, negotiated this transaction.
Hanley Investment Group Real Estate Advisors negotiated the sale of a 14,740-sq.-ft. single-tenant Walgreens in Victorville, Calif. for an undisclosed amount. The transaction closed at a reported cap rate of 5.69 percent. Walgreens carries a lease for the building with an initial 25-year term and 10 five-year options. The property was completed in 2011. William B. Asher and Patrick G. Kent, of Hanley Investment Group, represented the seller in the transaction. Vince Schwab, of Marcus & Millichap, represented the buyer.
TNP Strategic Retail Trust Inc. sold a Chase Bank and a Chevron parcel at Morningside Marketplace in Fontana, Calif. in a 1031 exchange transaction. Morningside Marketplace is a grocery-anchored shopping center completed in 2001. Tenants at the center include Ralphs, Baskin-Robbins and Togo’s.
Fidelis Realty Partners Ltd. bought First Colony Marketplace, a 111,675-sq.-ft. neighborhood shopping center in Sugar Land, Texas, from CAP First Colony LLC for an undisclosed amount. First Colony Marketplace is fully leased, with tenants including Fitness Connection, 99 Cents Only, Sears Hardware and Smoothie King. Rusty Tamlyn and Ryan West, of HFF, represented the seller in the transaction.
Shops at Friendship LLC sold Hickory Plaza Shopping Center, a 53,600-sq.-ft. neighborhood shopping center in Panama City, Fla., to a private investor. Hickory Plaza was completed in 1984. Tenants at the center include Dollar General, Anytime Fitness, Aaron Rents and The UPS Store, among others. Tim Giambrone, of Marcus & Millichap Real Estate Investment Services, represented the seller in the transaction.
Coastal Equities bought Collins Park Commons, a 37,458-sq.-ft. shopping center in Plant City, Fla. from RCG Ventures LLC. The center was 90 percent occupied at the time of sale. Tractor Supply anchors the property. Plaza Advisors negotiated this transaction.