Realty Income Corp. signed a purchase agreement to acquire 136 retail properties for approximately $250 million under long-term, triple-net lease agreements. The company plans to fund the purchase with borrowings under its acquisition credit facility and/or cash on hand.
The properties Realty Income is set to acquire under this deal would fit with those already in its portfolio. The acquisition is expected to close within the next 90 days.
“We are pleased to have been able to sign this purchase agreement. This acquisition, if completed by year-end, will bring our total 2010 acquisitions to approximately $690 million, and contribute to the continued stable stream of lease revenue from which we pay monthly dividends,” said Tom A. Lewis, CEO of Realty Income, in a statement.
Retail Opportunity Investments Corp. Completes $110M in Acquisitions
Retail Opportunity Investments Corp. acquired the Gramor portfolio, the Shops at Sycamore Creek and the Claremont Center conveyance-in-lieu of foreclosure. The company also entered into an agreement to acquire Gateway Village Shopping Center. The transactions are valued at approximately $110 million.
The Gramor portfolio consists of four shopping centers located in Oregon and Washington. These include Heritage Market Center, a 107,471-square-foot property in Vancouver, Wash.; Cascade Summit Town Square, a 94,924-suqare-foot center in West Linn, Ore.; Happy Valley Town Center, a 135,422-square-foot center in Happy Valley, Ore.; and Oregon City Point, a 33,305-square-foot property in Oregon City, Ore. All of the centers in the Gramor portfolio have occupancy levels above 80 percent.
The Shops at Sycamore Creek is a 74,198-square-foot grocery-anchored shopping center in Corona, Calif. It is currently anchored by Vons and is 77.6 percent occupied.
The Claremont Center is a 91,000-square-foot retail property in Claremont, Calif. Retail Opportunity Investments Corp. acquired the first mortgage on the center four months ago at a 68.2 percent discount to the face value of the loan.
Gateway Village is a 96,959-square-foot neighborhood shopping center located in Chino Hills, Calif. It is anchored by Henry’s Marketplace and is currently 91 percent occupied. Retail Opportunity Investments Corp. agreed to purchase the property for $34 million. At closing, the company plans to assume the sellers’ obligations under three existing loans, which total approximately $21.8 million and carry a blended interest rate of 5.8 percent. The loans are scheduled to mature between 2014 and 2016. The company will pay the remainder of the purchase price in cash.
Investec Amasses $130M War Chest
Investec raised $130 million to acquire grocery- and drugstore-anchored retail centers in the coastal region of California. The company plans to focus on best-in-class neighborhood shopping centers anchored by dominant grocers and pharmacies.
Investec is currently negotiating the purchase of two retail properties.
George Smith Partners Arranges $70M Glimcher Loan
George Smith Partners (GSP) arranged a $70 million senior permanent loan for Glimcher Realty Trust collateralized by the ground lease on the Scottsdale Quarter property in Scottsdale, Ariz. The non-recourse loan featured a five-year term and a 4.91 percent rate. Scottsdale Quarter is a 600,000-square-foot mixed-use center. The transaction facilitated Glimcher’s acquisition of the land under Phases I and II of the property. This, in turn, allowed the REIT to consolidate its leasehold and fee positions creating an increase in value.
Gary Mozer, principal and managing director of George Smith Partners, negotiated this transaction, along with Josh Roseman, senior vice president; Steve Orchard, senior vice president; and Scott Swisher, assistant vice president.
Excel Trust Buys Two Centers for $70M
Excel Trust Inc. acquired Brandywine Crossing and Rosewick Crossing for $70 million excluding closing costs. Brandywine Crossing is a 197,884-square-foot, grocery-anchored shopping center located in Brandywine, Md. Tenants at the property include Safeway, JoAnn’s, Marshall’s, Costco and Target. Rosewick Crossing is a 116,008-square-foot shopping center in La Plata, Md. It is anchored by Giant Food and Lowe’s. Excel Trust estimates the current net operating income on both properties totals approximately $5.3 million.
Allstate Grants Loan Extension for Mall of the Americas
Sterling Org. secured a $52.5 million loan extension with Allstate for the Mall of the Americas, a 790,000-square-foot retail center in Miami. The loan was scheduled to mature sometime in 2012.
The Mall of Americas, located on a 50-acre site on the Dolphin Expressway, houses Home Depot, Marshalls, Ross Dress for Less, AMC Theaters, CompUSA, Tiger Direct and Old Navy.
Al Rex, senior vice president with Grandbridge Real Estate Capital, facilitated this transaction.
CBL Buys Out Remaining Interest in Parkway Place
CBL & Associates Properties Inc. acquired the remaining 50 percent interest in Parkway Place in Huntsville, Ala. from its joint venture partner Colonial Properties Trust for $38.8 million. The price was comprised of $17.9 million in cash and the assumption of the remaining $20.9 million interest in the loan secured by the property.
Parkway Place is a 647,000-square-foot enclosed regional mall located along U.S. 231. The center is anchored by Belk and Dillard’s and also features Forever 21, Pottery Barn and Victoria’s Secret, among other retailers.
Other Notable Deals
Holliday Fenoglio Fowler L.P. arranged a $15.3 million loan for Core Plus Partners LLC to acquire the Streets of Chester, a 104,682-square-foot retail center in Chester, N.J. The property, completed in 2006, consists of two single-story buildings and is 92 percent leased. Tenants include Talbots, the Gap, Ann Taylor, Chico’s, J. Crew, White House/Black Market, Banana Republic, Coach and Coldwater Creek. Jon Mikula, senior managing director with HFF, placed the loan with Starwood Capital.
ESAN LLC purchased a 47,718-square-foot Winn-Dixie Supermarket in Haines City, Fla. for $1.79 million or $37.51 per square foot. The property is located on 6.81 acres of land. Cynthia Shelton and Mike Milano, of Colliers International, negotiated this transaction.
The Salvation Army purchased a 33,000-square-foot former Kia Auto dealership in Portsmouth, N.H. The company plans to turn the facility into a family thrift store. Jean Kan, of the Kane Co., represented the buyer in the transaction. Chris McInnis, of Paul McInnis Inc., represented the seller.