Costa Mesa-based shopping center developer Donahue Schriber announced the completion of a successful $248.5 million refinancing of a cross-collateralized portfolio of 10 retail properties: nine in California and one in Nevada.
CB Richard Ellis’ capital markets debt and equity finance group secured the funding for the transaction, led by Sharon Kline of CBRE capital market’s Newport Beach, Calif. office. Allstate Life Insurance Co. provided the $204.7 million fixed-rate portion of the financing and Allstate Insurance Co. provided the $43.8 million floating-rate portion on behalf of Donahue Schriber Realty Group L.P. Craig Zarro of Preferred Capital Advisors based in Sacramento, Calif. served as advisor on behalf of Donahue Schriber.
Both the fixed and floating rate portions carry a six-year loan term with 12-months of interest-only payments followed by a 25-year amortization. The new financing maintained the flexible structure of the original loan including substitution and partial release rights.
The retail portfolio consists of 10 core Donahue Schriber shopping centers built between 1985 and 2000 with a combined net rentable area of approximately 1.3 million square feet. At the time of financing, average occupancy of the properties was 97.7 percent. All of the assets are grocery anchored, except for Natomas Marketplace, which is a power center. The individual properties included in the funding are listed below:
- Aliso Pacific Plaza, Aliso Viejo, Calif. – 112,532 square feet, anchored by Ralphs, CVS Drug, and Pep Boys.
- Callen’s Corner I, Fountain Valley, Calif. – 103,466 square feet, anchored by Albertson’s.
- Callen’s Corner II, Fountain Valley, Calif. – 48,650 square feet, phase II shop space.
- Eldorado Village, North Las Vegas, Nev. – 93,216 square feet, anchored by Smith’s.
- Gold River Town Center, Rancho Cordova, Calif. – 139,470 square feet, anchored by Bel Air Market and Rite Aid.
- Natomas Marketplace, Sacramento, Calif. – 236,061 square feet, anchored by Staples, Petsmart, Regal Theatres, Michael’s and Ross Dress For Less. Shadow anchors include Home Depot, Wal-Mart, Shell Oil, and several restaurant pads.
- Portola Village, Livermore, Calif., – 91,646 square feet, anchored by Save Mart.
- Raley’s Plaza, Fairfield, Calif. – 95,441 square feet, anchored by Raley’s.
- Roseville Center, Roseville, Calif. – 96,750 square feet, anchored by Petco and Big 5 Sporting Goods. Shadow anchors include Target and Raley’s.
- The Marketplace, Bakersfield, Calif. – 298,193 square feet, anchored by Vons, Rite Aid, Edwards Theatres and Talbot’s.
HFF Arranges Series of Retail Deals
Holliday Fenoglio Fowler L.P. (HFF) announced several large retail financings and investment sales last week.
In the largest deal, HFF arranged $61 million in financing for The Shoppes at Chino Hills, a 388,000-square-foot, lifestyle center located in Chino Hills, Calif.
HFF worked on behalf of Chino Hills Mall LLC to secure the 5.2 percent, 10-year fixed-rate loan through Citigroup Global Markets Realty Corp. The investment group purchased the property all cash in June 2010, in a sale also arranged by HFF, with the intention of securing financing after initial stabilization and definition of the merchandising and marketing direction.
The Shoppes at Chino Hills was originally developed by Opus West in 2008 and is part of a larger master-planned project that includes the Chino Hills Civic Center, Chino Hills City Hall, Chino Hills Police Station and the public library. The 90 percent leased property was designed by Altoon + Porter architects and is anchored by Forever 21, H&M, Trader Joes, Banana Republic, Victoria's Secret and Barnes & Noble.
The HFF team representing the borrower included associate director Charles Halladay and senior managing director Don Curtis.
In a separate deal, HFF arranged $43 million in financing for the 172,524-square-foot Boulder Run Shopping Center in Wyckoff, N.J. HFF worked on behalf of Hekemian & Co. Inc., to secure fixed-rate financing with Allstate Investments LLC.
Originally completed in 1965, the property recently underwent a complete renovation and expansion that includes a newly constructed Stop & Shop supermarket. Other tenants at the shopping center include Marshalls, McDonald’s, and Starbucks.
The HFF team representing Hekemian was led by senior managing director Thomas Didio and director Michael Klein.
In a third deal, HFF closed the sale of the 106,976-square-foot Century Town Center community shopping center in Vero Beach, Fla.
HFF represented the seller, CRF Panther IX LLC, an entity controlled by Lakeland, Fla.-based Odyssey Diversified Properties Inc. Cole Real Estate Investments purchased Century Town Center for $14.78 million.
Completed in 2008, the property is 93.3 percent occupied. Major tenants include HomeGoods, Marshalls, Petco, JoAnn’s Fabrics and Olive Garden.
The HFF team representing the seller included managing directors Danny Finkle and Brad Peterson and director Luis Castillo. Thomas Falatko, vice president of acquisitions, represented Cole.
Lastly, HFF closed the sale of Bressi Ranch Village Center, a 111,403-square-foot grocery-anchored retail center in Carlsbad, Calif.
HFF marketed the property on behalf of the seller, LNR Property LLC’s commercial property group. Cornerstone Real Estate Advisers LLC purchased Bressi Ranch on behalf of one of its institutional clients.
Constructed in 2009 after nearly seven years of planning, the center is 96 percent leased and is anchored by Stater Bros., Trader Joes, Unleashed by PETCO, Souplantation Express, Chase Bank and Rubios.
The HFF team representing LNR was led by senior managing directors Ryan Gallagher and Tim Wright and associate director Ryan Hertel. Stewart Keith and Bill Thaxton of Flocke and Avoyer were the local market leasing representatives for the team.
Sonnenblick-Eichner Arranges $58.4M Financing
Sonnenblick-Eichner Co. arranged $58.4 million of first mortgage financing for Museum Square, a 553,000 square-foot office and retail complex located in the Miracle Mile district of Los Angeles.
The property is located two blocks from the Los Angeles County Museum of Art. Major tenants in Museum Square include: The Screen Actors Guild, County of Los Angeles and the American Federation of Television and Radio Artists (AFTRA).
The borrower was able to receive a 10-year interest-only fixed rate financing at less than 5 percent, according to Sonnenblick-Eichner.
The property is owned by a partnership, whose principals include Jerry Snyder, a California-based commercial real estate developer.
Glimcher Completes Refinancing of Ashland Town Center
Glimcher Realty Trust closed on a 10-year, $42.1 million mortgage loan secured by Ashland Town Center located in Ashland, Ky.
The new loan has a fixed interest rate of 4.9 percent and was originated by Goldman Sachs Commercial Mortgage Capital L.P. The loan is structured to be sold into the CMBS market. Loan proceeds were used to retire the $22.1 million of secured mortgage debt that had an interest rate of 7.25 percent per annum and was scheduled to mature in November 2011. The company incurred a charge of approximately $700,000 associated with the defeasance of the previous mortgage loan. The company used the remainder of the loan proceeds to reduce the outstanding borrowings on the company’s credit facility.
Excel Trust Conducts Offering of 12.5M Shares
Excel Trust Inc., a retail REIT, commenced an underwritten public offering of 12.5 million shares of common stock. The offering is expected to close on or about June 29.
The company has granted to the underwriters an option to purchase up to an additional 1.875 million shares within 30 days after the offering to cover over-allotments, if any. All shares are being offered by the company.
Excel Trust intends initially to use the net proceeds from this offering to fund a portion of the purchase price of The Promenade, to repay a portion of the outstanding indebtedness under its unsecured revolving credit facility, for future acquisitions and for other general corporate and working capital purposes.
Morgan Stanley, Barclays Capital, KeyBanc Capital Markets and Wells Fargo Securities are joint book-running managers for the offering.
Faris Lee Completes $16.5M L.A. Property Sale
Faris Lee Investments completed the $16.5 million sale of Westchester Place, a two-story 50,861-square-foot retail center in Los Angeles.
Built in 2007 and situated on 1.71 acres, tenants include: Bed Bath & Beyond, Starbucks Coffee, Wells Fargo and Movement Performance Institute.
Richard Walter, president, Donald MacLellan, senior managing director and Christopher Tramontano, director of Faris Lee Investments represented the seller, Los Angeles-based HFH Westchester LLC. The buyer – who paid all-cash – was U.K.-based 481 Albertoni LLC, which was represented by Eileen Garrison of Keller Williams Realty.
M&M Brokers Sale of Five-Property Portfolio
Marcus & Millichap Real Estate Investment Services, brokered the sale of a five-property Office Max/Office Depot portfolio located in Minnesota, West Virginia and Michigan. The sales price was approximately $11.5 million.
James Stonehill and Scott Wiles in Marcus & Millichap’s Cleveland office and Erin Patton in the firm’s Columbus office represented the seller, a local developer. Barry Wolfe, a vice president investments in Fort Lauderdale, represented the buyer, Kin Properties Inc. of Boca Raton, Fla.
Ralph Nash of Old Spruce Realty in West Virginia, Solomon Poretsky in Marcus & Millichap’s Minnesota office and Jonathon Dwoskin in the firm’s Detroit office, also provided representation.
The properties are:
- Office Max, 23,500 square feet, Alexandria, Minn.
- Office Max, 23,525 square feet, Brainerd, Minn.
- Office Max, 23,503 square feet, Mankato, Minn.
- Office Max, 23,620 square feet, Martinsburg, W.Va.
- Office Depot, 24,000 square feet, Traverse City, Mich.
Kite Realty Acquires Florida Center
Kite Realty Group Trust has acquired Lithia Crossings, a 81,000-square-foot unencumbered shopping center in Tampa, Fla., in an off-market transaction. Lithia Crossings is 95.5 percent leased and is anchored by Stein Mart.
The center also features a diverse lineup of national, regional, and local tenants such as Cold Stone Creamery, Panera Bread and Starbucks.
The purchase price of Lithia Crossings, exclusive of closing costs, was $13.25 million at an initial 8 percent cap rate. The company expects to fund the majority of this investment through the pending disposition of non-core assets, property specific debt and/or working capital.
Other Notable Deals
Westwood Financial Corp. has acquired the 6,336-square-foot Stroh Ranch Retail Center in Parker, Colo. Westwood Financial bought the distressed asset in a short sale and currently is eyeing similar opportunities in this sector. The two-unit, 1999-built Stroh Ranch Retail Center currently counts Pizza Hut as its only tenant after Blockbuster vacated last year, leaving it 21 percent-leased.
Hanley Investment Urban Retail Advisors, a division of Hanley Investment Group Real Estate Advisors specializing in the sale and advisory of high profile mixed-use and urban retail properties in dynamic commercial districts across the United States, announced today that Carlos J. Lopez and Edward B. Hanley, represented the buyer and seller in the sale of a 1,448-square-foot individual retail/commercial condominium unit in Irvine, Calif. The price was not disclosed. Built in 2007, the property is situated within the mixed-use residential/commercial development known as The Plaza Irvine, which consists of 202 luxury residences units and an adjacent 12,036-square-foot retail/commercial component. The buyer was a private investor from Irvine. The seller was Greenlaw Partners Inc.
The Boulder Group completed the sale of a single-tenant net-leased 13,650-square-foot Walgreens property in Chicago, IL for $7.03 million. The single tenant property is leased on a triple net basis to Walgreens for a 25 year lease term. Randy Blankstein and Jimmy Goodman of The Boulder Group represented both parties in the transaction. The seller was a Chicago based developer and the buyer was a 1031 exchange investor based in southern California. In a separate deal, Boulder Group completed the sale of a single-tenant net-leased 56,100-square-foot Hobby Lobby property in Avon, Ind., for $5.75 million.
USAA Real Estate Co. announced the sale of the 12,000-square-foot 5th Street Crossing, a mixed-use, transit-oriented development in Garland, Texas. The property was sold to Minneapolis-based, Oaks Properties LLC for an undisclosed sum. Mark Stymiest with CB Richard Ellis Group Inc. represented the seller in the transaction. The development includes 188 class-A multifamily units and approximately 12,000 square feet of retail/office space. It was completed in 2009 through a development partnership between USAA Real Estate and High Street Residential, a subsidiary of Trammell Crow Co..
David Zacharia of DZ Realty LLC, announced that its client, a private investor, purchased ane operating Jack in the Box in Las Vegas, for $1.86 million.
NAI Realvest recently negotiated a $1 million purchase of the former Hops Restaurant on S.R. 46 near the Seminole Town Center mall in Sanford, Fla. Matt Cichocki and Kevin O’Connor, principals at NAI Realvest, negotiated the transaction representing the buyer Halmony LLC who plans to convert the 5,422-square-foot building on its 1.26 acre site for use as an IHOP restaurant. The seller, ACI Income Fund II Ltd. was represented by Annette Gangale of Rife-Miller Inc.
Daniel J. Hyman, president of Millennium Properties R/E Inc., announced the sale of of 10,000-square-foot office/retail building in Kildeer, Ill., for $802,500. Hyman represented the seller while Jefferey Kowal of Edgemark Commercial Real Estate Services LLC represented the buyer. Wendy Reutebuch of Much Shelist Denenberg Ament & Rubenstein counseled the seller.