George Smith Partners closed a $185 million financing on behalf of DJM Capital Partners Inc. to refinance a four-center retail portfolio in Southern California. The deal included a $70.6 million loan for La Habra Marketplace; a $40.2 million loan for Village Del Amo; a $42.2 million loan for Montalvo Square and a $32 million loan for Lakewood Square. The loans were non-recourse permanent loans and featured a sub-3.9 percent rate.
The proceeds from the transaction will be used to pay off existing senior and mezzanine loans due in the next 12 to 18 months, in addition to defeasance costs.
Over the past 10 years, the properties have averaged an occupancy rate of 97.2 percent.
Phillips Edison—ARC Buys Six Atlanta Shopping Centers for $60.5M
Phillips Edison—ARC Shopping Center REIT Inc. acquired a portfolio of six grocery-anchored shopping centers in the Greater Atlanta area for an aggregate purchase price of approximately $60.5 million. The centers contain a total of 507,668 sq. ft. of space and are anchored by five Kroger stores and a Publix store.
“We are extremely pleased to have closed this portfolio in the Greater Atlanta metro area,” said Phillips Edison—ARC CEO and co-chairman of the board Jeffrey Edison in a statement. “We believe in the strength of the grocery-anchored shopping center model and feel that these acquisitions further enhance the strength of our portfolio by adding strong, credit-worthy tenants such as Kroger and Publix.”
HFF Arranges $33M Loan to Refinance Shops at Arbor Trails
HFF arranged a $33 million loan on behalf of Christopher Commercial Inc. to refinance the Shops at Arbor Trails, a 357,168-sq.-ft. grocery-anchored shopping center in Austin, Texas. Principal Real Estate Investors provided funding for the loan, which features a fixed 3.07 percent interest rate and a seven-year term.
The Shops at Arbor Trails was completed in 2010. The property is fully leased. Whole Foods Market anchors the center. Other tenants include Costco, Havertys Furniture and Staples. HFF”s Doug Opalka and Patrick McCord negotiated this transaction.
Marcus & Millichap Sells Missouri Shopping Center in $11.45M Deal
Marcus & Millichap Real Estate Investment Services negotiated the sale of Cave Springs Shopping Center in Saint Charles, Mo. for $11.45 million. Cave Springs sits on a 14.42-acre site. Tenants at the center include TJ Maxx, Shoe Carnival, Harbor Freight Tools, Quick Trip and Wendy’s, among others. Marcus & Millichap’s Alvin Mansour and his team represented both parties in the transaction.
Other Notable Deals
Cronheim Mortgage placed an $8.2 million permanent loan on a 53,878-sq.-ft. retail property in Dobbs Ferry, N.Y. A bank provided funding for the loan, which features a 3.85 percent rate for the first seven years, a 12-year term and no recourse. New York Sports Club anchors the property. Cronheim’s David Turley and Anna Westhoff negotiated this transaction.
HC Real Estate Capital arranged a $6 million loan for Sedano’s Plaza, a 123,164-sq.-ft. retail center in Pembroke Pines, Fla. A life insurance company provided funding for the loan, which features a 15-year term. Sedano’s Plaza is currently 99 percent leased. Sedano’s Supermarket anchors the property. Other tenants include Wells Fargo, Flannigan’s Seafood Bar and Grill, Burger King and La Granja. Kurt Hoffmann and Chris Caveglia, of HC Real Estate Capital, negotiated this transaction.
Coastal Equities bought Hungarybrook Shopping Center, an 87,190-sq.-ft. neighborhood shopping center in Richmond, Va., from 1200-1300 Concord Avenue Holdings LLC for $5.7 million. Food Lion and Dollar Tree anchor the property. Alexandria Divaris, Jason Oliver and John Wingfield, of Divaris Real Estate, represented the special servicer, CWCapital Asset Management LLC, in the transaction.
Hanley Investment Group Real Estate Advisors negotiated the sales of three retail centers in southern California for more than $4.4 million. The transactions involved Santa Ana Square, a 3,285-sq.-ft. center in Santa Ana., which sold for $1.55 million; 123-201 W. 17th Street and 122 W. 18th Street, a 3,890-sq.-ft. retail center in Santa Ana, which sold for $1.85 million; and a 1,835-sq.-ft. single-tenant Wienerschnitzel, which sold for $1 million. Jonathan Selznick negotiated these transactions.
A joint venture of Kinship Capital, Pearlmark Real Estate Partners and Madison Marquette recapitalized 300 Grant St., a 32,000-sq.-ft. retail property in San Francisco. The partnership plans to market the property to a new flagship tenant in the coming months. Nick Thomson and Ethan Meers, of Kinship Capital, Eric Hohmann, of Madison Marquette, and Dirk Degenaars and Jason Trailov, of Pearlmark, were the lead executives on this deal. Madison Marquette has leased and managed the space for the past 10 years.
A private equity investor bought Woodlake Plaza, a 131,210-sq.-ft. grocery-anchored shopping center in Greenacres, Fla., from JBH Woodlake Plaza LLC. The center was completed in 1988 and was 97.6 percent leased at the time of the sale. Tenants at the property include Monterrey Market, Dollar General, Goodwill, Phoenix Theatres and Medical Institute of Palm Beach. Jim Michalak and Paul Bores, of Plaza Advisors, represented the seller in the transaction.
Naresh Kumar bought a 2,210-sq.-ft. triple net leased Five Guys Burgers & Fries in York, Pa. from Atlantic Properties. Chad Stine and Brad Rohrbaugh, of Bennett Williams, represented the seller in the transaction. WRDC purchased Shippensburg Shopping Center, a 142,965-sq.-ft. retail center in Shippensburg, Pa., from Hill Management. Stine and Rohrbaugh represented the seller in the transaction.
Paragon Real Estate Fund purchased Bridgeworks Retail, an 18,569s-q.-ft. retail condominium in San Diego, from an affiliate of S.D. Malkin Properties Inc. for an undisclosed amount. The condominium was completed in 2000 and is fully leased to tenants including Lou & Mickey’s restaurant, MAC, Toscana Café and Chuck Jones Gallery. Ryan Gallagher, CJ Osbrink, Tim Wright and Zack Holderman, of HFF represented the seller in the transaction.