Agree Realty Corp. amended its $85 million unsecured revolving credit facility. The amendment includes the extension of the facility’s maturity date to October 2015 and the addition of two one-year extension options, subject to customary conditions.
In addition, the annual interest rate on borrowings under the facility has been reduced to LIBOR plus 150 to 215 basis points, based on the company’s leverage ratio. A $50 million accordion feature can increase the facility’s capacity to $135 million.
Bank of America N.A. will serve as the administrative agent on the transaction, with other participating banks including PNC Bank, Bank of Montreal and U.S. Bank. Agree Realty also closed on a $23.6 million CMBS loan with Morgan Stanley Mortgage Capital Holdings LLC. The non-recourse loan features a fixed 3.6 percent interest rate and a 10-year term. The proceeds from the transaction will be used to pay amounts outstanding under the company’s unsecured credit facility.
“These transactions, in conjunction with a recently closed $25 million term loan, provide the company with increased capacity to fund its growing acquisition and development platforms while taking advantage of today’s low interest rate environment,” said Agree Realty President and COO Joey Agree in a statement. “We appreciate the strong support we received from our bank group and lenders, which speaks to the quality and strength of our portfolio.”
HFF Helps Refinance West Hollywood Property with $78M Loan
HFF arranged a $78 million loan on behalf of Broadreach Capital Partners to refinance The Sunset, a 177,949-sq.-ft. mixed-use development in West Hollywood, Calif. AIG Asset Management Group provided funding for the transaction, which features a floating rate and a three-year term, with one-year extension options.
The Sunset contains a 71,119-sq.-ft. office tower, a 106,830-sq.-ft. retail and office plaza and a 937-space subterranean parking garage. It is 95 percent leased to tenants including 19 Entertainment, Talpa Media Group, Apple, Equinox Fitness and H&M.
Todd Sugimoto, Andrew Harper, Richard Plummer, Michael Ross and Michael Leggett, of HFF, negotiated this transaction.
In an unrelated announcement, HFF arranged a $42.5 million loan on behalf of Angelo, Gordon & Co. and City Center Realty Partners LLC for Public Market, a 272,000-sq.-ft. mixed-use project in San Francisco. Bank of America provided funding for the loan, which features a floating rate, a six-year term and no recourse. The loan also includes a one-year extension option and a future funding component for property renovations, leasing commissions and tenant improvements.
Public Market combines 153,000 sq. ft. of retail space with 119,000 sq. ft. of class-A office space. Urban Outfitters, Guitar Center, Peet’s Coffee & Tea, Regal Cinemas and In-Shape Health Club anchor the property. Office tenants include Random House, Silicon Valley College and Rocket Software. Peter Smyslowki and Kevin Redford, of HFF, negotiated this transaction.
Cole Affiliate Buys Hickory Flat Commons for $19M
Connolly Realty Services sold Hickory Flat Commons, a 114,751-sq.-ft. grocery-anchored retail center in Canton, Ga., to an affiliate of Cole Real Estate Investments for $19 million. Hickory Flat Commons was completed in 2008. The property is 96 percent leased. Tenants at the center include Kroger, Anytime Fitness, Verizon Wireless, Little Caesars, Gymboree and Great Clips. Jim Hamilton, Richard Reid and Thomas Falatko, of HFF, negotiated this transaction.
H&R REIT Pays $10.8M for Granada Plaza in Florida
H&R REIT bought Granada Plaza, a 74,200-sq.-ft. grocery-anchored shopping center in Dunedin, Fla., from Odyssey Diversified Properties Inc. for $10.8 million. The property underwent a renovation in 2004 and is currently 86 percent leased. Tenants include Publix, Curves, UPS Store, Hair Cuttery and Firehouse Subs. Danny Finkle and Luis Castillo, of HFF, represented the seller in the transaction.
Other Notable Deals
42 Washington Square LP bought a 51,572-sq.-ft. portion of Washington Square, a 136,314-sq.-ft. retail center in Bermuda Dunes, Calif., from Washington Square S.C. LLC for $9.55 million. The transaction closed at a cap rate of approximately 7 percent. The sold property was 97 percent occupied at the time of escrow. Dennis Vaccaro and Matt Mousavi, of Faris Lee Investments, represented both parties in the transaction.
A Tennessee-based private investment group sold Heron Creek Towne Center, a 64,664-sq.-ft. grocery-anchored shopping center in North Port, Fla., to Phillips Edison-ARC Shopping Center REIT Inc. for $8.65 million. The center is 90 percent leased to tenants including Subway, The UPS Store and Sparkle Brite Pool Stores. Mark Shellabarger and Cliff Taylor, of CBRE, represented the seller in this transaction.
Quantum Real Estate Advisors Inc. negotiated the sale of a 14,716-sq.-ft. Walgreens Pharmacy in Chicago to a private 1031 exchange buyer for $8.078 million. Chad Firsel and Jordan Kaufman, of Quantum Real Estate, negotiated this transaction.
Marcus & Millichap Real Estate Investment Services negotiated the sale of The Shops at Walnut Grove, a 24,803-sq.-ft. neighborhood shopping center in Feasterville, Pa., for $7 million, or $282 per sq. ft. The Shops at Walnut Grove was completed in 2011. Bottom Dollar Food anchors the property. Brad Nathanson, of Marcus & Millichap, represented the buyer in the transaction. Richard Soloff, of Soloff Realty & Development, represented the seller.
Barry Slatt Mortgage arranged a $6.5 million mortgage on behalf of Sand Hill Property Co. for a 14,500-sq.-ft. newly constructed Walgreens store in San Jose, Calif. EverBank provided funding for the loan, which features a 10-year term and a declining prepayment penalty that starts at 5 percent in year one and declines to 1 percent in year five. The financing was used to pay off an existing construction loan.
Centrum Properties sold a 12,996-sq.-ft. multi-tenant building at Main Street and Geneva Road in Wheaton, Ill for $4.8 million, or approximately $370 per sq. ft. in a 1031 Starker exchange. The building is 100 percent occupied, with tenants including Starbucks Coffee, GameStop, Verizon Wireless and Qdoba Mexican Grill. Chad Firsel, of Quantum Real Estate Advisors, negotiated this transaction.
Luttner Real Estate Investment Services negotiated the sale of a net leased Family Dollar store in Olmsted Falls, Ohio for $1.154 million. The transaction closed at a cap rate of 8.4 percent. Family Dollar holds a 10-year lease for the property. Mark Luttner, of Luttner Real Estate, negotiated this transaction.
Aston Properties Inc. bought The Market on Cherry Road, a 132,547-sq.-ft. shopping center in Rock Hill, S.C., from Lamar Cos. for an undisclosed amount. The center was completed in 1968 and renovated in 1998. Office Depot, Big Lots and Anna’s Linens anchor the property. Berkeley Capital Advisors represented the buyer in the transaction. Kevin T. Fryman, of Hanley Investment Group Real Estate Advisors, represented the seller.
Aston Properties Inc. bought The Market on Cherry Road, a 132,547-sq.-ft. shopping center in Rock Hill, S.C., from Lamar Cos. for an undisclosed amount. The center was completed in 1968 and renovated in 1998. Office Depot, Big Lots and Anna’s Linens anchor the property. Berkeley Capital Advisors represented the buyer in the transaction. Kevin T. Fryman, of Hanley Investment Group Real Estate Advisors, represented the seller.
Hanley Investment Group Real Estate Advisors negotiated the sale of a fee-simple ownership in the land leased to a single-tenant, 3,360-sq.-ft. McDonald’s in Wichita Falls, Texas. Jeremy S. McChesney, of Hanley Investment Group, represented both parties in the transaction.
Hanley Investment Group Real Estate Advisors negotiated the sale of a fee-simple ownership in the land leased to a single-tenant, 3,360-sq.-ft. McDonald’s in Wichita Falls, Texas. Jeremy S. McChesney, of Hanley Investment Group, represented both parties in the transaction.
An affiliate of Cole Real Estate Investments sold Manchester Highlands, a 353,700-sq.-ft. regional power center in Manchester, Mo., to a private investment group. The center was completed in 2009. Walmart Supercenter, Best Buy, Bed Bath & Beyond, PetSmart, Basset Furniture and Ulta anchor the property. Ben Wineman, of Mid-America Real Estate Group—Missouri LLC, represented the seller in the transaction.
Entities affiliated with Publix Super Markets Inc. purchased Plantation Towne Square, a 108,111-sq.-ft. retail center in Plantation, Fla., and Colonial Shopping Center, a 67,351-sq.-ft. shopping center in Miami, from Plaza Development Realty Inc. Plantation Towne Square was developed in 2001 and is 98.6 percent leased. Publix, Publix Liquors, Starbucks, Verizon, Bank United, Gamestop, Hair Cuttery and Allstate occupy the center. Colonial Shopping Center was developed in 1997 and expanded in 2007. The property is 95.8 percent leased. Tenants include Publix, Family Dollar, FootLocker, MetroPCS, RadioShack, Gamestop and Space Coast Credit Union. Luis Castillo, Daniel Finkle and Robert Saracco, of HFF, represented the seller in the transaction.
Blanchard Real Estate Capital acquired a 152,000-sq.-ft. Walmart Supercenter in York, S.C. Lowe’s Home Improvement store shadow-anchors the property. Joe Montgomery and Tony D’Ambrosio, of Colliers International, represented the seller in the transaction. Blanchard represented itself.
An affiliate of Pine Tree Commercial Realty LLC acquired a 64,130-sq.-ft. Rainbow Foods grocery store in Bloomington, Minn. for an undisclosed amount. Cantor Fitzgerald provided financing for the transaction.
Hunington Properties Inc. negotiated the sale of a 5,678-sq.-ft. freestanding Driver’s Auto Repair in Sugar Land, Texas in a 1031 exchange transaction. Todd A. Carlson, of Hunington Properties, represented the seller and procured the buyer.