National Retail Properties Inc. priced an underwritten public offering of 7,000,000 shares of its common stock at $25.75 per share. The offering comes with a 30-day option for underwriters to purchase up to 1,050,000 additional shares. It was expected to close on December 5, 2011.
National Retail Properties plans to use the proceeds from the transaction to repay borrowings under its credit facility, for general corporate purposes and to fund future property acquisitions.
Wells Fargo Securities, BofA Merrill Lynch and Citigroup acted as joint book-running managers for the offering. Raymond James and RBC Capital Markets were senior co-managers. Morgan Keegan, Stifel Nicolaus Weisel, UBS Investment Bank, BB&T Capital Markets, Janney Montgomery Scott, Piper Jaffray, PNC Capital Markets LLC, SunTrust Robinson Humphrey, Capital One Southcoast and FBR Capital Markets were co-managers.
Alexander’s Refinances Rego Park II with $275M Loan
Alexander’s Inc. closed a $275 million loan to refinance Rego Park II, its 610,000-sq.-ft. shopping center in Queens, N.Y. The loan featured a rate of LIBOR plus 1.85 percent, a seven-year term and a 30-year amortization schedule.
Alexander’s used the proceeds from the loan to repay existing debt on the property.
Vestar to Raise $250M for Fund Targeting Value-Add Retail Assets
Vestar launched a retail investment fund, Vestar Strategic Retail Partners. Vestar plans to raise $250 million of equity capital for the fund by mid-year 2012. The fund will acquire value-add retail properties in Western and Southwestern U.S. priced between $20 million and $100 million.
“We believe this is a great time to invest in value-add retail properties,” said Vestar Chief Investment Officer Bob Cavanaugh in a statement. “With our firm’s track record of acquiring and stabilizing struggling assets, we are confident that our in-house capabilities will create meaningful value for the fund’s investors.”
Vestar’s strategy is to acquire and reposition properties within a three- to seven-year hold period.
PCCP Refinances Valley Fair Mall in $69.2M Deal
PCCP LLC provided a $69.2 million senior loan to a joint venture of Coventry Real Estate Advisors and Satterfield Helm to recapitalize and renovate Valley Fair Mall, an 877,153-sq.-ft. regional mall in Salt Lake City.
Valley Fair Mall was completed in 1970 and continues to be anchored by JC Penney and Macy’s, its original anchor tenants. The new loan will finance the construction of a 15-screen, 110,000-sq.-ft. Megaplex movie theater to replace a former Mervyns store. The movie theater is scheduled to open in the fourth quarter of 2012. A 150,000-sq.-ft. freestanding Costco serves as the mall’s fourth anchor.
“The PCCP loan will refinance the current loan, as well as provide funding for significant new construction, including the Megaplex, approximately 50,000 square feet of new junior anchor space and significant renovation of the mall interior,” said Jim Galovan, vice president with PCCP LLC, in a statement. “Overall, this opportunity fit well with PCCP’s debt strategy as the retail center is a well-performing asset in a strong location with both durable in-place cash flow and immediate value-add opportunities.”
Phillips Edison—ARC Completes Initial Seeding of PECO-ARC Institutional Joint Venture I
Phillips Edison—ARC Shopping Center REIT Inc. completed the initial seeding of PECO-ARC Institutional Joint Venture I. Phillips Edison—ARC contributed five of its grocery-anchored shopping centers to the joint venture, for an aggregate gross asset value of $47.1 million.
Under the joint venture agreement, Phillips Edison—ARC will contribute approximately $59 million and its joint venture partners will contribute $50 million toward the transaction.
OmniAmerican Bank to Finance Phase II of Fort Worth Development
OmniAmerican Bank, in participation with Southwest Bank, provided a $14.5 million loan to CPR Cypress West 7th LLC, a Cypress Equities company, for the construction of phase III of West 7th, a mixed-use development in Fort Worth, Texas. Phase III will include approximately 32,000 sq. ft. of retail and restaurant space and 96 multifamily units.
The loan comes with a floating interest rate and an initial term of three years.
Marcus & Millichap Broker Negotiates $46.7M in Sales in Third Quarter
Alvin Mansour, of Marcus & Millichap Real Estate Investment Services, negotiated the sale of 13 single-tenant properties during the third quarter of 2011, valued at approximately $46.7 million. The deals included the sale of a Walgreens in Naperville, Ill. for $7.05 million; the sale of a Walgreens in Edinburg, Texas for $6.9 million and the sale of a Walgreens in Leitchfield, Ky. for $4.83 million. Mansour also negotiated the sale of a 75,378-sq.-ft. FedEx Ground facility in Evansville, Ind. for $6.395 million.
Phil Sambazis, Brent Yurtkuran and Larry Hausman provided additional representation on the transactions.
Ramco-Gershenson Buys Town & Country Crossing for $37.8M
Ramco-Gershenson Properties Trust acquired Town & Country Crossing, a 282,000-sq.-ft. shopping center in a suburb of St. Louis, Mo. for $37.8 million in an all cash transaction. A 137,000-sq.-ft. Target and a 55,000-sq.-ft. Whole Foods anchor the property. Other tenants at the center include Five Guys Burgers and Fries, FedEx, PNC Bank, Qdoba Mexican Grill, Sprint and Verizon. The center is 81 percent leased.
“Town & Country Crossing is a terrific complement to Heritage Place, our other St. Louis shopping center,” said Ramco-Gershenson President and CEO Dennis Gershenson in a statement. “Both centers met our acquisition criteria, including superior trade area demographics, strong anchor tenants, favorable pricing and value-add potential. Additionally, we were able to increase our footprint in St. Louis, which we have identified as an attractive expansion market.”
American Realty Capital Trust III Completes Dollar General and Walgreens Acquisitions for $17.6M
American Realty Capital Trust III Inc. acquired five freestanding single-story Dollar General stores for an aggregate purchase price of approximately $4.5 million and two Walgreens for an aggregate purchase price of approximately $13.1 million. The stores total about 72,175 sq. ft. of space.
The Dollar General stores are located in Missouri, in towns including Licking, King City, Stanberry, Conway and Auxvasse. All five stores come with triple net leases for 15-year terms. The weighted average remaining term on the leases is 14.1 years.
The Walgreens stores are located in Maplewood, N.J. and Stevensville, Mich. The New Jersey store comes with a 75-year lease, with the option to terminate after 25 years, in October 2036. The Michigan store also comes with a 75-year term and the option to terminate after 25 years. However, the termination option can be exercised earlier, in October 2032.
Other Notable Deals
NorthMarq Capital arranged a $10.5 million first mortgage on behalf of 125th Street Gateway Ventures LLC for the Gateway Building, a 41,832-sq.-ft. mixed-use property in New York City. Tenants at the building include Duane Reade, Raymour & Flanagan and NYSARC. The loan featured a seven-year term and a 25-year amortization schedule. Symetra Life Insurance Co. provided the loan.
HFF arranged a $9.7 million acquisition loan on behalf of The Hampshire Cos. for a portfolio of six CVS stores in Florida totaling 56,015 sq. ft. A life insurance company provided the financing. It came with a fixed interest rate and a seven-year term. The pharmacies are located in Vero Beach, Gainesville, Orlando, Sarasota and St. Petersburg. Michael Klein, Jon Mikula and Paul Hsu, of HFF, negotiated this transaction.
AG/BP Rosewood LLC sold Rosewood Center, a 60,000-sq.-ft. shopping center in Bellflower, Calif., to Bequer Investments for $6.5 million. The center was 30 percent vacant at the time of the sale. Existing tenants at the property included Carl’s Jr., Papa John’s Pizza and Healthcare Partners. Christopher E. Maling and David Maling, of Colliers International, represented the seller in the transaction. Arthur Flores, of CB Richard Ellis, represented the buyer.
The Boulder Group negotiated the sale of a 14,750-sq.-ft. single tenant net leased Walgreens in Olive Branch, Miss. for $5.175 million in a 1031 exchange transaction. The building was developed in 2007 and is leased to Walgreens for a 25-year term. Randy Blankstein and Jimmy Goodman, of The Boulder Group, represented the buyer in the transaction. In a separate transaction, Blankstein and Goodman negotiated the sale of a single tenant, 1,928-sq.-ft. net leased Starbucks in Peoria, Ill. to a private individual investor for $1.175 million. The property was developed in 2005 and is leased to Starbucks for a five-year term.
Washington Trust provided a $1.85 million commercial mortgage to Soscia Enterprises Inc. for the refinancing and renovation of Coventry Shoppers Park, a neighborhood shopping center in Coventry, R.I. Cat Fusco, vice president with Washington Trust’s commercial real estate group, arranged this transaction.