Kimco Realty Corp. increased its ownership interest in Kimco-UBS (KUBS)joint venture to 33 percent. Previously, Kimco held an 18 percent stake in the joint venture. At the same time, affiliates of Blackstone Real Estate Partners VII completed the acquisition of the remaining 67 percent interest in the venture from affiliates of UBS Wealth Management North American Property Fund. Both transactions were based on a gross purchase price of $1.1 billion, including $631 million in assumed debt.
The joint venture includes 39 shopping centers totaling 5.6 million sq. ft. of space and located in New York, Virginia, Texas, Florida,and Maryland. The portfolio is 96 percent occupied and features an average base rent of $15.51 per sq. ft. Major tenants at the centers include Publix, Giant Food, Whole Food Markets, Safeway, Home Depot, Nordstrom Rack, Bed Bath & Beyond and T.J. Maxx.
Rouse Refinances Valley Hills Mall with $68M Loan
Rouse Properties Inc. closed on a $68 million mortgage for Valley Hills Mall, a 933,668-sq.-ft. enclosed mall in Hickory, N.C. The non-recourse CMBS loan features a fixed interest rate of 4.47 percent and a 10-year term. Rouse received net proceeds of approximately $15 million from the transaction, after closing and defeasance costs. The previous mortgage on Valley Hills Mall featured a 4.73 percent interest rate with a maturity date of March 2016.
Valley Hills Mall was completed in 1978 and underwent a remodel in 2001. Belk, Dillard’s, JC Penney and Sears anchor the property, while in-line tenants include American Eagle Outfitters, Bath & Body Works, Buckle, Journeys, Justice and Victoria’s Secret.
“Lenders continue to respond positively to our leasing and asset reinvestment strategy, as we continue to unlock the inherence value that exists throughout our portfolio,” said Rouse CFO John Wain in a statement. “With this transaction, we continue to execute our refinancing strategy.”
HFF Secures Acquisition Funding for Houston’s North Oaks Shopping Center
HFF secured $39.1 million in acquisition financing on behalf of World Class Capital Group LLC for North Oaks Shopping Center, a 448,760-sq.-ft. power center in Houston. Deutsche Bank provided a $34.5 million securitized loan, which features a 10-year term and a fixed interest rate. SteepRock Capital provided a $4.6 million mezzanine loan.
North Oaks Shopping Center underwent a renovation in 2012. It is currently 93.7 percent leased to tenants including Hobby Lobby, Ross Dress for Less, T.J. Maxx, Big Lots, Mardel, Staples, 99 Cents Only and Dollar Tree.
HFF’s Tyler Ford and Christopher Vittetoe negotiated this transaction.
Whitestone REIT Buys Scottsdale Community Center in $21.3M Transaction
Whitestone REIT acquired Mercado at Scottsdale Ranch, a 118,730-sq.-ft. community shopping center in Scottsdale, Ariz. for $21.3 million, or $179 per sq. ft. The purchase price included an $11.1 million debt assumption and $10.2 million in equity.
Tenants at the center include AJ’s Fine Foods and Walgreens. It has in-place cash flow of approximately $1.7 million, or eight percent of the purchase price.
“The Mercado at Scottsdale Ranch is a class-A stabilized community center with a future value-add opportunity, located in a densely populated, master-planned affluent community,” said Whitestone Chairman and CEO James C. Mastandrea in a statement. “Mercado is the primary shopping center serving the upscale Scottsdale Ranch neighborhood and the nearby Mirador and Ensenada del Oro neighborhoods. The center was purchased below replacement cost, and serves an area with significantly higher annual total consumer expenditure per person than the broader Phoenix metropolitan statistical area.
Cypress Equities Real Estate Investment Management acquired Lloyd Center, a 1.478-million-sq.-ft. regional shopping center in Portland, Ore. Lloyd Center was developed in 1960. Nordstrom, Macy’s, H&M, Sears, Marshalls, Barnes & Noble and Ross Dress for Less anchor the property. In addition, the center features more than 180 in-line shops, a 900-seat food court, an indoor ice skating rink and an eight-screen movie theater.
The Mansour Group negotiated the sale of Southwest Plaza, a 368,065-sq.-ft. power center in Springfield, Ill. The property was completed in 2003. It was 100 percent occupied at the time of the sale by tenants including Barnes & Noble, Best Buy, Men’s Warehouse, Michael’s, Office Depot, Party City, PetSmart, Ross and Sports Authority. Alvin Mansour negotiated this transaction.
Morris-Floyd Capital Partners acquired Longview Plaza, a 157,000-sq.-ft. power center in Longview, Texas, from Longview Plaza Ltd. BBVA Compass provided financing for the transaction. Longview Plaza was completed in 1992 and underwent an expansion in 1999. It is currently 100 percent occupied, with tenants including Bed Bath & Beyond, T.J. Maxx, Michael’s, Office Depot, Best Buy and Books-A-Million. Bruce Marshall and Bill Graham, of Sperry Van Ness, negotiated this transaction.
An affiliate of Starwood Capital Group acquired Kitsap Mall and two adjacent properties, Kitsap Place and North Point at Kitsap in Silverdale, Wash, from Macerich for an undisclosed price. Kitsap Mall contains 700,000 sq. ft. of space. Kitsap Place and North Point at Kitsap are shopping centers that contain an additional 150,000 sq. ft. of retail. Jones Lang LaSalle represented the seller in the transaction and represented Starwood in securing financing for the deal.
RCG Ventures acquired Northway Plaza, a 199,717-sq.-ft. shopping center in Queensbury, N.Y., from Berkadia. Hobby Lobby, Peter Harris Clothes and Panera Bread anchor the property. RCG plans to make significant upgrades to the center and develop two new outparcels.
Terraces LLC, a joint venture between Combined Properties and Saban Capital Group, bought The Terraces, a 172,803-sq.-ft. community shopping center in Los Angeles, from Terraces Ranchos Palos Verdes LLC. The Terraces was completed in 1959 and renovated in 1988 and 2008. It is 90 percent leased, with tenants including Trader Joe’s, Marshalls and LA Fitness. Bill Bauman, Kyle Miller and Marc Navarro, of Studley, represented the seller in the transaction.
Grandbridge Real Estate Capital closed a $2.25 million first mortgage on an 11,750-sq.-ft. retail property in Minneapolis. The property is part of the mixed-use Lumen on Lagoon project. A life insurance company provided funding for the loan, which features a fully amortizing term of 15 years and an interest rate in the low four percent range. Grandbridge’s Tony Carlson negotiated this transaction.
SR Loxahatchee LLC purchased Seminole Orange Plaza-Building 2, a 5,155, four-tenant shopping center in Loxahatchee, Fla., from Loxahatchee Venture LLC for $1.55 million. The property was completed in 2012. It is 100 percent leased to Walgreens Liquors, Papa John’s, a chiropractor and a beauty salon. David Donnellan and Todd Weintraub, of CBRE, represented the seller in the transaction.