Taubman Centers Inc. agreed to purchase The Mall at Green Hills in Nashville, Tenn. and The Gardens on El Paseo/El Paseo Village in Palm Desert, Calif. from Davis Street Properties for $560 million, excluding transaction costs.

The purchase price consists of the assumption of approximately $206 million in debt, up to $80 million of partnership units in The Taubman Realty Group Limited Partnership and the balance of approximately $274 million in installment notes. The number of partnership units will be determined based on a value of $55 per unit.

The Mall at Green Hills is an 887,000-square-foot fashion center anchored by Dillard’s, Macy’s and Nordstrom. It was completed in 1955.

The Gardens on El Paseo/El Paseo Village consists of two adjacent open-air retail properties across the street from each other anchored by Saks Fifth Avenue. The Gardens on El Paseo was completed in 1998 and El Paseo Village in 2010. Together, they total 236,000 square feet.

“These high quality assets, which are dominant in their respective marketplaces, are an excellent strategic fit for our company,” said company Chairman, President and CEO Robert S. Taubman in a statement. “We are projecting their sales to exceed $700 per square foot on average in 2012. The occupancy costs of these centers average below 10 percent—significantly less than the occupancy costs of our portfolio. As a result, we believe there is an opportunity to substantially increase their Net Operating Income over time.”

Taubman Centers’ board of directors already approved the transaction. It is subject to due diligence and is expected to close in the fourth quarter of 2011.

Realty Income Closes Third Quarter With $462M in Acquisitions

Realty Income Corp. announced that during the third quarter, it invested approximately $462 million in 89 new properties. The properties are located throughout 15 states and are 100 percent leased to nine different tenants, with an initial average lease yield of approximately 8.1 percent.

“We are pleased to have acquired these properties leased to a diverse group of tenants. This brings our total completed acquisitions during the first three quarters of 2011 to $826 million,” said company CEO Tom A. Lewis in a statement. “These immediately accretive acquisitions will further diversify our property portfolio and will provide us with increased leave revenue from which to pay monthly dividends.”

Equity One Sells Non-Core Assets, Buys New Shopping Center

Equity One Inc. closed on the sale of Trio Apartments and Park Plaza for an aggregate price of $124.9 million and on the acquisition of Aventura Square for $55.5 million.

Trio Apartments is a 304-unit apartment building in Pasadena, Calif. in which Equity One owned a 50 percent interest. It was sold for $112.2 million, including the assumption of a $62.8 million mortgage. Park Plaza is a 73,000-square-foot office building in Sacramento, Calif. in which Equity One owned a 100 percent interest. The company sold the asset for $12.7 million, including the assumption of a $7.4 million mortgage.

Aventura Square is a 113,450-square-foot shopping center in Aventura, Fla. Bed Bath & Beyond, Old Navy and DSW anchor the property. It is not encumbered by any debt.

Karlin Real Estate Buys Two Scottsdale Shopping Centers in $50.3M Transaction

Herberger Enterprises Inc. and Shea East LLC sold Shea Scottsdale Shopping Center and Shea Scottsdale East in Scottsdale, Ariz. to Karlin Real Estate for $50.32 million. The price works out to $181.49 per square foot. Shea Scottsdale Shopping Center is a 160,228-square-foot retail center anchored by Safeway and CVS Pharmacy. Shea Scottsdale East is a 117,025-square-foot retail center anchored by Harkins Shea 14 Theatre. The two centers were built in multiple phases between 1974 and 1994. At the time of the sale they were 85 percent leased.

Ryan Schubert, Michael Hackett and Eric Jorgensen, of Cassidy Turley BRE Commercial, negotiated this transaction.

Boulder Group to Advise on Sale of Nine-Property Walgreens Portfolio

The Boulder Group has been appointed as the exclusive advisor on the sale of a nine-property Walgreens portfolio on the East Coast. The properties, listed for sale at an asking price of $70 million, include stores in Connecticut, Massachusetts, New Hampshire and New Jersey. All of the stores are leased to Walgreens on a long-term basis and will only be sold as a portfolio. Randy Blankstein and Jimmy Goodman will handle this assignment on behalf of the Boulder Group.

Marcus & Millichap Sells Georgia Walmart and Sam’s Club for $32.8M

Marcus & Millichap Real Estate Investment Services negotiated the sale of a 352,073-square-foot Walmart Supercenter and Sam’s Club in Douglasville, Ga. to a private REIT for $32.8 million in an all-cash transaction. The price represents $93 per square foot.

Both the Walmart Supercenter and Sam’s Club were constructed in 1999. The base triple-net lease term on the properties runs through November 2019 and contains six five-year options.

Craig F. Johnson, associate vice president in Marcus & Millichap’s Atlanta office, represented both parties in the transaction.

In another transaction, Marcus & Millichap negotiated the sale of a 13,738-square-foot, Walgreens-anchored retail property in Chicago, Ill. for $10.8 million. The price works out to $786 per square foot. In addition to Walgreens, tenants at the center include Verizon Wireless Mobile Generation and Bank of America. Austin Weisenbeck and Sean Sharko, of Marcus & Millichap, represented the seller, a local developer, in the transaction.

Other Notable Deals

Terramar Retail Centers LLC acquired Encinitas Village, a 183,675-square-foot neighborhood retail center in Encinitas, Calif., from a private investment company. Ralphs Grocery, CVS Drug and Trader Joe’s anchor the property. The center underwent an upgrade in 2008 with new landscaping, improved circulation and patio seating areas. Pete Bethea, of Cushman & Wakefield, represented the seller in the transaction.

Chino North Retail LLC sold Rancho del Chino, a 162,000-square-foot shopping center in Chino, Calif. to Levy Affiliated. The center was built in 2007 and includes tenants such as JC Penney’s, McDonalds, Scottrade and Home Depot. Bill Bauman and Kyle Miller, of Studley, represented both parties in the transaction.

World Class Capital Group acquired Custer Creek Center, an 80,000-square-foot retail center in the Dallas area from Woodforest National Bank. The center sits on an 8.5-acre tract of land and includes multiple pad sites.

CB Richard Ellis negotiated the sale of Gerber Village, a mixed-use development in Asheville, N.C., from HMP Properties to Babyfish Two LLC for $8.9 million. The property contains 60,111 square feet of retail space, 27,572 square feet of office space and seven residential apartments totaling 8,098 square feet of space. Office Depot anchors the retail portion of the property. Other notable tenants include Charles Schwab, Verizon, Five Guys Burgers & Fries, Frankie Bones Restaurant & Lounge and The Thirsty Monk. The center was 64 percent leased at the time of the closing. Mike Burkard and Steve Shields, of CBRE, represented the seller in the transaction. Key Commercial Real Estate represented the buyer.

Quantum Real Estate Advisors Inc. negotiated the sale of a 10,836-square-foot single-tenant CVS building in Wheaton, Ill to a private partnership for $5.3 million. Jordan Kaufman, senior vice president of Quantum Real Estate represented the seller, a private individual, in the transaction.

Inland Private Capital Corp. sold a 26,170-square-foot PetSmart-occupied retail building in Bowie, Md. to an unaffiliated private partnership for $5.1 million. The single-tenant property is 100 percent leased. Inland held a loan on the building that was set to mature in 2013. The sale resulted in an overall internal rate of return of more than 13 percent. Stan Johnson Co. represented the seller in the transaction. Addison Herring Inc. represented the buyer, 4500 Mitchellville Road Inc.

Hudson Realty Capital LLC funded a $5 million bridge loan for the purchase of a 38,805-square-foot retail condominium space in Brooklyn, N.Y. The property contains four separate ground-floor retail units that make up two condominium buildings. Approximately 9,400 square feet at the property is currently vacant. The borrower plans to lease the remainder of the space.

American Realty Capital Trust III Inc. acquired a fee simple interest in two Advance Auto Parts stores in Houston, Texas for approximately $3.1 million, excluding acquisition costs. The properties have 13,471 square feet of space in total and are both 100 percent leased to Advance Stores Co. Inc., which carries an investment grade credit rating.

Mid Atlantic Properties Inc. sold 1711 York Road, a strip center in Lutherville, Md., to B&G York LLC for $2.36 million. The price works out to $290 per square foot. The center is 100 percent leased. Gil Neuman, of KLNB Retail, represented the seller in the transaction. The buyer represented itself.