GA Keen Realty Advisors, a division of Great American Group LLC, a provider of asset and real estate disposition, valuation and appraisal services, found retailers to purchase leases for 41 properties formerly operated by high-end clothing company Metropark in less than two weeks.
Retained by Metropark to assist the debtor’s financial advisors CRG Partners Group LLC and debtor’s counsel Cooley LLP, GA Keen was selected to market and sell stores across 21 states that had been operated by Metropark. The company had 14 days to run a marketing process and was able to find takers for all the leases in that short timeframe.
In an auction, Cotton On Group won 35 leases in exchange for $910,000 and Perry Ellis Menswear acquired six leases for properties in California, Nevada, Texas and Georgia in exchange for $775,000. All transactions are subject to bankruptcy court approval.
“For many years after our founding in 1982, we built our business selling leases for companies and retailers who were in a bankruptcy or restructuring mode, but selling leases given the economy over the past few years has been very difficult,” GA Keen co-president Matthew Bordwin said in a statement. “To find new retailers to assume the leases for that many properties in only two weeks is a testament to the outstanding work our team did in getting the word out, aggressive marketing and the quality of the locations, as well.”
Metropark operated stores in some of the best malls and shopping centers in the country, which offered retailers an opportunity to move into store space with little up-front costs on build-out and a chance to obtain “A-type” space in multiple locations at the same time, according to GA Keen. The properties, which range in size from 2,000 square feet to 3,500 square feet, are located throughout the country. The majority are concentrated in the Western United States (California, Arizona, Colorado, Nevada and Texas) and the East Coast (New York, New Jersey, Pennsylvania, Georgia and Florida).
A Los Angeles-based retailer of premium denim, other clothing and accessories founded in 2004, Metropark filed for Chapter 11 bankruptcy protection on May 2.
Kite Realty Group Trust Enters into a $200M Unsecured Credit Facility
Kite Realty Group Trust announced that it has entered into an amended and restated three-year $200 million unsecured revolving credit facility with a one-year extension option.
Terms of the agreement include pricing at LIBOR plus 225 to 325 basis points depending on the company’s leverage and an expansion feature allowing up to $300 million of total borrowing capacity, subject to certain conditions. Proceeds were used to refinance Kite’s existing unsecured revolving credit facility.
The company’s bank group is led by KeyBank N.A., as administrative agent, and Bank of America N.A., as syndication agent. Other banks in the syndicate include Wells Fargo Bank N.A., as documentation agent; BMO Harris Financing Inc.; Raymond James Bank FSB; Citicorp North America Inc.; U.S. Bank N.A.; The Huntington National Bank; and Royal Bank of Canada.
NorthMarq Arranges Three Retail Financings
Three NorthMarq Capital regional offices announced recent retail financings.
In the largest deal, Bill Libercci, vice president of NorthMarq’s Baltimore regional office, arranged first mortgage financing of $19 million for the 197,000-square-foot White Marlin Mall in Ocean City, Md.
Major tenants at the center are Marshall’s, Staples, Bed, Bath and Beyond, Michael’s and Petco. Financing for the borrowers, a joint venture between Greenberg Gibbons and Prudential Real Estate Investors, was arranged by NorthMarq through its relationship with Goldman Sachs Commercial Mortgage Capital – CMBS. The terms of the loan were undisclosed.
In a separate deal, Michael Elmore, senior vice president and managing director of NorthMarq’s Los Angeles regional office, arranged a $13.5 million first mortgage financing for the 108,809-square-foot Palo Woods Shopping Center in Harbor City, Calif. Major tenants at the site are LA Fitness and Ross. Financing was based on a 15-year term and a 15-year amortization schedule, and was arranged for the borrower by NorthMarq through its correspondent relationship with ING Life Insurance and Annuity Co.
The asset includes a former K-Mart store redeveloped as a two-tenant building for LA Fitness and Ross. Older shops were also renovated and two retail pads finished. The first pad was leased to Chase.
Finally, John Kinser, vice president of NorthMarq’s Phoenix regional office, arranged first mortgage financing of $5.6 million for the 28,776-square-foot Charleston Crossing retail center in Sierra Vista, Ariz.
Olive Garden and Verizon Wireless are the major tenants at the property. Financing was based on a 10-year term and a 25-year amortization schedule and was arranged for the borrower by NorthMarq through its correspondent relationship with Symetra Life Insurance Co.
Pine Tree Commercial Realty Forms JV with Silverpeak Real Estate Partners
Northbrook, Ill.-based Pine Tree Commercial Realty and New York-based Silverpeak Real Estate Partners formed a joint venture with the goal of acquiring retail assets and portfolios across the U.S., according to Chris Westfahl, principal of Silverpeak, and Peter Borzak, co-founder and principal of Pine Tree.
The new JV, Pine Tree Silverpeak Retail Partners LLC, plans to pursue transactions greater than $10 million and across the risk spectrum, ranging from raw land for development to stabilized core assets.
According to Westfahl, this will be the first retail platform that the company has launched since the investment advisory business formed last year as a successor to Lehman Brothers Real Estate Partners. The firm had thus far concentrated on office, hotel and residential assets.
A&B Properties Sells San Antonio Center
A&B Properties Inc. the real estate subsidiary of Alexander & Baldwin Inc., announced the sale of the 139,500-square-foot Arbor Park Shopping Center in San Antonio, Texas, for $22.5 million. The company also announced that, in a separate transaction, it has acquired the Union Bank Office complex in Everett, Wash., an 84,100 square-foot, two-building office facility, for $10.9 million.
A&B purchased the Arbor Park Shopping Center for $16 million in 1998, upon completion of its construction. The center is located in north-central San Antonio and is anchored by Ross Dress for Less, Office Max, Sun Harvest Farms and Michaels Store.
HFF closes $20.48M Sale of The Cannery in San Francisco
HFF announced today that it has closed the sale of The Cannery, a 98,983-square-foot mixed-use building in San Francisco’s Fisherman’s Wharf district.
HFF marketed the property on behalf of the seller. The property was purchased for $20.58 million free and clear of debt. The iconic property was aggressively pursued resulting in over 25 offers to purchase.
Originally developed in 1907 as the world’s largest peach cannery, the property has operated as a multi-level mixed-use center for the last 50 years. The Cannery was extensively renovated in 2001 and includes two, three-story office and retail buildings. Located at 2801 Leavenworth Street, the 1.29-acre site is situated in the heart of San Francisco’s Fisherman’s Wharf district, which attracts more than 16 million visitors annually and is ranked as one of the top five destinations nationally.
The HFF team representing the seller included directors Samuel Brownell and Nicholas Bicardo and senior managing director Michael Leggett.
WP Realty Acquires Chesterfield Marketplace
WP Realty acquired the 428,576-square-foot Chesterfield Marketplace shopping center in Midlothian, Va., for an undisclosed price. It is WP Realty’s tenth acquisition of the year.
Chesterfield Marketplace is anchored by a 26,040-square-foot PetSmart, a 24,049-square-foot Staples, a 30,000-square-foot TJ Maxx and shadow-anchored by a 150,000-square-foot Home Depot and a 66,009-square-foot Toys ‘R’ Us.
The portion of the center acquired, 197,942 square feet, is currently 54 percent occupied with 91,232 square feet of available space, including a 40,000-square-foot junior anchor space, a 37,500-square-foot junior anchor space and 13,732 square feet of small store retail space.
DeBartolo Development Acquires Mixed-Use Development Site
DeBartolo Development LLC in a joint venture with Encore Housing Opportunity Fund L.P. acquired Summerport Village, a 196-acre mixed-use development site in the affluent Central Florida community of Windermere. DeBartolo purchased Summerport Village for an undisclosed price at a 69 percent discount from the original capital stack.
The property has approximately 2,000 feet of waterfront views and has been entitled for 330 class-A multifamily units, an assisted living facility and 130,000 square feet of retail.
North American Properties Acquires Stalled Mixed-Use Development
North American Properties signed a contract to purchase Prospect Park, a stalled mixed-use development site, comprising 106 acres, in Alpharetta, Ga. The firm plans to develop the project into a more market responsive and community responsive center.
It is the second major mixed-use development project North American Properties has acquired in the past six months. In December 2010, a joint venture of North American Properties and CB Richard Ellis Investors purchased Atlantic Town Center, the 586,000 square-foot retail centerpiece of Atlantic Station, a shopping, entertainment, office and residential community in Midtown Atlanta.
Both purchases reflect North American Properties’ overall strategy to identify and invest in ‘blue chip’ retail projects in A+ locations with "solid platinum demographics," according to Mark Toro, managing partner of North American Properties. The acquisitions also signal a strategic turn for North American Properties, which is aggressively seeking select new opportunities and investments after making the decision in 2008 and 2009 to be more conservative during the challenged real estate market. The company sold most of its properties in 2006-2007.
“With these two major acquisitions, we are signaling our return to the market,” Toro said in a statement. “We believe Prospect Park and Atlantic Station have enormous, untapped potential, and we see opportunity for cross pollination of retailers and other elements that eventually will be beneficial to both centers.”
Prospect Park was originally conceived to be an ambitious, large-scale center for Atlanta’s northern suburbs, with retail, hotel and residential uses. North American Properties plans to reinvent the largely undeveloped site into a smaller retail and residential environment.
Other Notable Deals
Hanley Investment Group Real Estate Advisors announced that Eric P. Wohl and Edward B. Hanley represented Phillips Edison & Co. in the sale of the 99,727-square-foot Stella Link Center in Houston. The purchase price was $6.85 million, representing $69 per square foot and an 8.36 percent capitalization rate. The property was 76 percent occupied at the time of sale. The buyer, Festival Properties Inc. was represented by Marvin Stapper of M.M. Stapper Co.
The 4,762-square-foot West Chelsea retail condominium located at 456 West 19th Street in New York City traded for $6.55 million. Eastern Consolidated executive managing directors Ronald A. Solarz and Eric M. Anton with Eric Weinberg, associate director, represented the seller and procured the buyer, a private, New York-based company specializing in value-added real estate investments and development.
Colliers International South Florida announced the sale of 13401 S. Dixie Highway in Pinecrest, Fla., on behalf of ESF Holdings LLC. The property, a former 4.93-acre Hallett Pontiac car dealership, was sold to Publix Supermarkets Inc. for an undisclosed price. Publix was represented in the transaction by Brandon Partners. Michael T. Fay, president and founding partner of Colliers International South Florida, was the sole broker in the transaction.
Dinosaur Capital Partners acquired the 27,500-square-foot former Borders Bookstore at the Marketplace at Braintree in Braintree, Mass., in partnership again with The Grossman Cos. for $4 million. The standalone box is part of a power center containing Best Buy, Staples, K-Mart, Bed, Bath and Beyond, Sports Authority, Petsmart and others. Andrew Bonica and Mike Hotarek of Eastern Retail Properties brokered the sale. Dinosaur paid off a loan to buy the property.
The Boulder Group completed the sale of a single-tenant net-leased Advance Auto Parts property in Marietta, Ga., for $1.35 million. The 6,271 square foot building was redeveloped in 2011 on an outparcel to Sprayberry Square Shopping Center. The single-tenant property is leased on a net basis to Advance Auto Parts for a 15-year term. Randy Blankstein and Jimmy Goodman of The Boulder Group represented the buyer, a Midwest institutional investor. The seller was a local developer based in Atlanta.
Daniel J. Hyman, president of Millennium Properties R/E Inc., announced the sale of 103 Sutton Road in northwest suburban Streamwood, Ill., for an undisclosed sum. Developer Hemant Modi purchased the land site from a local, multi-branch. Kathryn Fink counseled the seller.