HFF announced financings on three retail properties last week in separate deals worth a cumulative $286 million.
In the largest deal, HFF announced today that it has arranged $230 million in acquisition financing for the 950,000-square-foot Landmark Center mixed-use complex in Boston.
HFF worked to secure a fixed-rate loan through New York Life Insurance Co. and New York State Teachers Retirement System on behalf of institutional investors advised by J.P. Morgan Asset Management and Samuels & Associates.
Landmark Center is a mixed-use complex located at the confluence of the Longwood Medical Area and Fenway neighborhood of Boston. Currently, the property is 98 percent leased, with a blend of credit retail and office tenants. Major office tenants include Blue Cross Blue Shield of Massachusetts, Harvard School of Public Health and Harvard Medical School. The retail units are occupied by Bed Bath & Beyond, Best Buy, REI, Staples and a 13-screen movie theatre. In addition to the current stabilized value, the property has the potential for an additional development of 337,000 square feet over the parking garage.
The building is located adjacent to Fenway Triangle Trilogy, a mixed-use residential and retail project developed by a joint venture with institutional investors advised by J.P. Morgan Asset Management and Samuels & Associates. The Fenway neighborhood is being re-developed into a 24/7 mixed-use community offering a wide range of services, stores and restaurants to its residents.
The HFF team representing the borrowers was led by senior managing directors Bob Herron and Whitney Wilcox and director Greg LaBine.
In a separate deal, HFF arranged $32 million in financing for the 605,722-square-foot Hudson Valley Plaza in Kingston, N.Y. HFF worked on behalf of HUH US Real Estate Income REIT, Inc., an affiliate of The Hampshire Cos., to secure the seven-year, fixed-rate loan through an unnamed life insurance company. Loan proceeds were used to acquire the property. HFF will also service the loan.
Completed in 1995, the property is 98 percent leased to tenants including Wal-Mart Supercenter, Sam’s Club, Lowe’s, Michaels and Petsmart.
The HFF team representing The Hampshire Companies was led by senior managing director Jon Mikula and director Michael Klein.
In the final deal, HFF arranged a $24 million construction/permanent loan for South Shore Place, a mixed-use development consisting of a 200-key Hyatt Place Hotel and 46,200 square feet of retail shops to be developed on the site of the former Sheraton Braintree Hotel in Braintree, Massachusetts.
HFF worked on behalf of Carpenter & Co. and BayNorth Capital LLC to secure the two-year loan with a five-year extension option through Cambridge Savings Bank and Brookline Savings Bank. HFF previously arranged a joint venture between Carpenter and BayNorth to acquire and redevelop the property in early 2010.
The HFF team representing the Carpenter/BayNorth joint venture included senior managing director Riaz Cassum and director Lauren O’Neil.
Morris-Floyd Capital Buys Three Centers
Morris-Floyd Capital Partners announced that the firm has closed on three shopping centers in the last 45 days. The newly purchased shopping centers located in Arkansas, New Mexico and Ohio join with two acquisitions made last year to bring Morris-Floyd’s portfolio to over 460,000 square feet at a total cost of $44 million.
Military Road Shopping Center is an 118,000-square-foot community center located in a rapidly growing suburb of Little Rock, Ark. The 100 percent leased center is anchored by JC Penney. Morris-Floyd Plans to renovate and upgrade the center and create access to the adjacent Kroger store.
Brazito Plaza located in Las Cruces, N.M. is a 66,000-square-foot Albertson’s-anchored neighborhood center.
The Neighborhood Shoppes at Polaris, located on the northern edge of Columbus, Ohio, is 100 percent leased.
These are in addition to the acquisition made last year of the 130,000-square-foot Kroger Marketplace-anchored Worthington Place in the Columbus, Ohio, area and Bradford Plaza shopping center in Oklahoma where Morris-Floyd just recently signed new leases with Old Navy and TJ Maxx and negotiated a $950,000 incentive agreement with the City of Stillwater.
Each property was acquired with equity and non-recourse leverage provided by a private bank or public CMBS lenders. Morris-Floyd is in discussion with several private equity groups and is considering forming a fund to finance current properties in its pipeline and future opportunities.
Global Fund Investments Acquires Two Centers Through a Joint Venture
In a joint venture with two Israeli insurance companies, Migdal Insurance Co. and Menora Mivtachim Insurance, Global Fund Investments has acquired Sunshine Plaza and Shenandoah Square for a combined purchase price of $37 million.
Sunshine Plaza is a 237,000-square-foot shopping center anchored by Publix, Old Time Pottery and Dollar Tree, with a newly-executed lease in place with Marshall’s. It is located in Tamarac, Fla.
Shenandoah Square is a 126,000-square-foot shopping center anchored by Publix, Walgreens, and Dollar Tree.
The acquisition marks the first transaction of the newly formed Global / Migdal / Menora joint venture, created for the purpose of acquiring in-fill, institutional-level, grocery-anchored shopping centers. Global will act as the general partner, and will manage and lease the properties.
Marcus & Millichap Announces Series of Deals
Marcus & Millichap Real Estate Investment Servicesannounced a series of retail sales transactions.
In the largest deal, the firm negotiated the sale of a Stop & Shop ground lease in Cranston, N.J. for $13.5 million. The price represents $270 per square foot.
Robert Horvath and Todd Tremblay in Marcus & Millichap’s Boston office represented the seller, Churchill & Banks. Horvath and Tremblay also represented the buyer, Cole Capital Advisors Inc. Margaret Huelskamp, Marcus & Millichap’s broker of record for Rhode Island, assisted in the transaction.
Stop & Shop has constructed a 50,000-square foot building on the site on approximately 7.5 acres. This year, the grocery chain signed a 20-year lease with 11 five-year options and rent escalations every five years.
In a separate deal, Marcus & Millichap arranged the sale of two Rite Aid net-leased assets in Southern California. Combined, the two drugstores traded for $6.5 million and are located in Wildomar, Calif., and San Diego.
Alvin Mansour, a senior vice president and senior director of Marcus & Millichap’s National Retail Group, represented both the seller and buyer in these two separate transactions. The Rite Aid in Wildomar was sold by a developer to a private investor. Mansour also negotiated the sale of a Rite Aid in San Diego to a private investor. The seller was a family trust.
Lastly, the firm arranged the sale of three single-tenant net-leased assets in Texas. Combined, the assets, which are 7-Eleven convenience stores located in the Dallas/Fort Worth Metroplex, traded for $6.4 million.
Mansour represented the seller, a local developer in the portfolio sale.
The Rosen Group Acquires Two Publix-Anchored Shopping Centers
The Rosen Group Inc. acquired two centers for a combined $14.67 million.
In one deal, Rosen Group acquired Harbor Oaks Shopping Center in downtown Clearwater, Fla., for $6.60 million. Anchored by a 28,000-square-foot Publix supermarket, the 40,000-square-foot shopping center was built in 2002 and is 97 percent occupied.
The company also acquired Anderson Pavilion in Anderson, SC, for $8.07 million. Anchored by a 44,000-square foot Publix supermarket, the 64,000-square center was built in 2003 and is 100 percent occupied.
RCG Ventures Closes Series of Deals
RCG Ventures LLC announced a series of acquisitions.
The firm acquired the 136,827-square-foot Meadow Greens shopping center in Eden, N.C. from an undisclosed buyer. The center is anchored by Aaron's Rents and Save-A-Lot and the seller was represented by Berkeley Capital.
RCG also acquired an existing note collateralized by the 212,897-square-foot Meridian Crossroads power center in Meridian, Miss. The asset was originally planned to be developed into two phases. The current center is anchored by Best Buy, Ross, Petco, Books-A-Million and Bed, Bath & Beyond.
Lastly, RCG acquired the note on the 150,544-square-foot Pea Ridge Shopping Center in Huntington, W.Va.
Other Notable Deals
Douglas Development acquired the Equitable Building at 915 F Street, NW in Washington D.C.’s Penn Quarter neighborhood. Douglas Development plans to market the 1,200-square-foot building to retail and restaurant prospects.
TNP Strategic Retail Trust Inc. sold a land parcel at the 109,250-square-foot Craig Promenade, a retail center in North Las Vegas, Nevada, to a private entity. Thompson National Properties intends to use the proceeds from this sale to acquire Topaz, a fresh&easy center in Southern California, through a 1031 exchange.