NEW VENTURES Retail Development Partners (RDP), a New York-based retail services company, has been formed by Richard Seligman, a retail consultant and former senior managing director of New York-based Insignia/ESG's retail group. The company will provide a full range of consulting and retail real estate services to retailers, developers and property owners in the United States and internationally. Three divisions have been set up within the company: RDP Brokerage, RDP Property Advisors and RDP Retail Consultants. Plans call for the opening of additional offices in London and Milan, Italy.
Atlanta-based Baita Retail Development LLC has undergone a name change due to a company reorganization. It has been transferred from Baita International LLC to Baita Real Estate Inc., Baita International's parent company. Baita Retail Development LLC has been renamed Agora Developments LLC. While the firm's headquarters will remain in Atlanta, its operations will be centered in Jacksonville, Fla. Agora is currently developing centers along the East Coast.
San Diego-based Burnham Pacific Properties Inc. has announced that it will outsource its property management function to third-party providers. Outsourcing will result in a 26% reduction in the company's workforce and the closure of three property management offices.
The decision follows the company's agreement to acquire the 34-center portfolio of San Francisco-based AMB Property Corp. Each of these centers is managed by a third party. Joseph Wm. Byrne, COO, says, "Outsourcing property management activities under the supervision of our asset managers allows us to maximize our time on (value-added) activities." The company will record a $1.5 million restructuring charge in first quarter 1999, while the transition is set for a July 31 completion.
SALES & ACQUISITIONS Chicago-based General Growth Properties Inc. has acquired approximately 2.25 million sq. ft. of property for $810 million from D/E Hawaii Joint Venture, a Hawaii general partnership comprising Hawaii Central Development Inc. and Daiei Hawaii Investments Inc. Included in the transaction are Ala Moana Center in Honolulu, two adjoining office buildings totaling 383,000 sq. ft., 52,000 sq. ft. of additional retail and 44,000 sq. ft. of vacant land. Ala Moana Center, a 1.8 million sq. ft. open-air center, is anchored by Neiman Marcus, Liberty House, Sears and JCPenney.
Bethesda, Md.-based Carl M. Freeman Associates has purchased Olney Village Mart in Olney, Md., for $20.5 million from The AFL-CIO Pension Trust. The 163,000 sq. ft. community center is anchored by Shopper's Club Warehouse, which expanded to 51,000 sq. ft. in 1998. The McLean, Va., office of Towson, Md.-based KLNB Inc. acted as broker for both parties in the transaction. Miami-based Florida Neighborhood Centers has acquired South Dade Shopping Center in Miami for $20.7 million from The Sterling Cos., Palm Beach, Fla. The center is anchored by Publix, AMC Theatres, Beall's Outlet and Priceless. Miami-based Aztec Group Inc. acted as broker for both parties in the transaction.
The LEFMARK Group, Miami, has acquired 12 properties from separate owners with plans to redevelop the centers. The properties comprise 900,000 sq. ft. and were purchased for $27.5 million. Their redevelopment costs total $50 million. They include:
- Six Kmart-anchored centers, four located in Florida, one located in West Virginia and one located in Ohio. Kmart has agreed to a design that is a non-traditional Kmart elevation.
- Six other centers, both anchored and unanchored, all located in Florida.
Beachwood, Ohio-based Developers Diversified Realty Corp. and Irving, Texas-based David Berndt Interests have acquired a 40-acre site in Round Rock, Texas, for an undisclosed amount from 35, 45 Investors LP, an Austin, Texas-based limited partnership. The site will be developed as La Frontera, a 790,288 sq. ft. open-air power center. The development will be anchored by Lowe's, Sam's Club, Office Depot, T.J. Maxx, Old Navy and an 83,000 sq. ft. theater. Completion is set for summer 2000.
Cary, N.C.-based Konover Property Trust has acquired four community shopping centers for $26.8 million from private investors. The centers include:
- Eastgate Plaza, a 181,910 sq. ft. center anchored by Winn-Dixie, in Pensacola, Fla.;
- Dukes Plaza, a 140,977 sq. ft. center anchored by Farmer Jack, in Harrisonburg, Va.;
- Braves Village, a 59,787 sq. ft. center anchored by Food Lion and Eckerd Drug Store, in Socastee, S.C.; and
- Dare Center, a 113,699 sq. ft. center anchored by Belk and Food Lion, in Kill Devil Hills, N.C.
The RREEF Funds, Chicago, has acquired Springfield Commons in Springfield, Va., for $27 million from The Fried Cos., also of Springfield. The 119,000 sq. ft. power center is anchored by Borders, Old Navy and Staples. Towson, Md.-based KLNB Inc. acted as broker for both parties in the transaction.
Newton, Mass.-based New England Development has acquired The Westgate Mall in Brockton, Mass., for $16.9 million from Campanelli Investment Properties, also of Brockton. The 601,084 sq. ft. regional shopping center is anchored by Bradlees, Macy's and Marshalls. Boston-based Spaulding & Slye represented the seller and introduced the buyer in the transaction.
The RREEF Funds, Chicago, has sold two Illinois centers. The sales prices were not disclosed. Oakbrook Terrace, Ill.-based Mid-America Real Estate Corp.'s Investment Sales Group represented the seller in the transactions, which include:
- Howard Western Shopping Center, an 85,600 sq. ft. center in Chicago that was sold to San Francisco-based AMB. The center is anchored by Jewel Food Store, Walgreens and Woolworth's.
- Plaza del Prado, a 129,112 sq. ft. center in Glenview that was sold to Boston-based TA Realty Advisors as an advisor to an institutional investor. The center is anchored by Jewel Osco.
CORPORATE MERGERS Carlsbad, Calif.-based GMS Realty LLC has acquired Camino Village Plaza in Encinitas, Calif., for $27.8 million from Los Angeles-based Mitsui Real Estate Sales USA. The 225,739 sq. ft. community center is anchored by Vons, Pep Boys Service & Tire Center, Wherehouse Entertainment and Playco Toys.
Cary, N.C.-based Konover Property Trust has acquired Tampa, Fla.-based RMC Realty Cos. LP, a manager and leasing agent of neighborhood and community shopping centers. RMC has become a separate business unit, RMC/Konover Property Trust, that will continue to do business from RMC's Tampa office. Suzanne Levin Rice, general partner and principal at RMC, has joined RMC/Konover as president, while Michael Leads, executive vice president and COO of RMC, will move into those positions with RMC/Konover.
Denver-based Newman & Associates, a wholly owned subsidiary of Horsham, Pa.-based GMAC Commercial Mortgage, has signed a definitive agreement to acquire the assets of Quantum Financial Corp., a Chicago-based boutique investment banking firm. The firm will be named Newman & Associates and will continue to operate from its current offices.
FINANCING AWARDS New York-based Metropolitan Life Insurance Co. recently placed $120 million in permanent financing with PPR Washington Square LLC, a partnership between Santa Monica, Calif.-based Macerich Partnership LP and Toronto-based Ontario Teacher's Pension Plan Board. With the loan, the company has acquired 680,458 sq. ft. of the 1.3 million sq. ft. Washington Square Mall in Tigard, Ore. The mall is anchored by Nordstrom, JCPenney, Mervyn's, Sears and Meier & Frank.
Phoenix-based FINOVA Realty Capital has arranged and provided financing for two centers:
- The company's Nashville office arranged a $9.7 million permanent loan to refinance Governor's Crossing Outlet Mall in Pigeon Forge, Tenn. The loan was arranged on behalf of the center's owners, also of Pigeon Forge.
- The company's San Francisco office arranged $25 million in bridge financing to Levin Menzies Kelly & Associates, Walnut Creek, Calif. The investment firm is using the funding to acquire the 358,000 sq. ft. non-anchor space of the 1 million sq. ft. Lincoln Mall near Chicago.
North Plainfield, N.J.-based Levin Management Corp. has been named manager and leasing agent of Playtogs Shopping Plaza in Middletown, N.Y. The 196,000 sq. ft. center is anchored by Redner's Warehouse Market. The company was selected by the center's owners, Houston-based Fairfield Financial Group.
MANAGEMENT CONTRACTS Los Angeles-based CB Richard Ellis Retail Services has been named property manager of Scripps Ranch Marketplace in San Diego by Dallas-based Invesco Realty Advisors. The 140,000 sq. ft. center is anchored by Vons and Longs Drug Store. Invesco acted on behalf of the center's owner, the Hawaii Employee Retirement System.
The Phoenix, Ariz., office of New York-based Turner Construction Co. has been awarded a contract for the construction of The Mall at Sierra Vista, located in Sierra Vista, Ariz. The company will build the core and shell space of the 155,000 sq. ft. center, which is being developed by Salt Lake City-based JP Realty Inc. Turner is also coordinating tie-ins to the main structure for two department stores and a 10-screen theater. The project is set for an October 1999 completion.
The Burnham Retail Group, San Diego, has been awarded leasing responsibilities at Sweetwater Town & Country in National City, Calif. The 240,000 sq. ft. community center is anchored by Pacific Theatres, Staples, Circuit City, Longs Drug Store and Bally Total Fitness. The company was selected by the center's owners, Sweetwater Associates, also of San Diego.
OTHER TRANSACTIONS Chicago-based Tanguay-Burke-Stratton has been awarded two leasing assignments in the Chicago area. They include:
- Bricktown Square Shopping Center, a 270,000 sq. ft. center anchored by Toys 'R' Us, Kids 'R' Us, Sportmart, Plitt Theaters, Pier 1 Imports, Marshalls and Frank's. Birmingham, Mich.-based Malan Realty Investors Inc. owns the center.
- Prairie View Shopping Center, a 344,000 sq. ft. center anchored by Dominick's, Walgreens, Marshalls, Old Navy, Bally Total Fitness, Chernin's Shoes and Frank's. The center is owned by a Canadian company.
Lutherville, Md.-based H&R Retail has been awarded leasing responsibilities at two Springfield, Va., centers. The centers were recently acquired by New York-based The RREEF Funds.
- Best Buy Metro Center, a 105,000 sq. ft. center, is anchored by Best Buy, PetsMart and Zainy Brainy.
- Springfield Commons Shopping Center, a 270,000 sq. ft. center, is anchored by Home Depot, Borders, Old Navy, Party City, Staples and Pier 1 Imports.