Pennsylvania Real Estate Investment Trust conducted an underwritten public offering of 9 million common shares. The company priced the offering at $16.25 per share. The joint book-running managers for this offering were Bank of America Merrill Lynch, Citi and Wells Fargo Securities. J.P. Morgan is the lead manager for the offering. The company expects to grant the underwriters a 30-day option to purchase up to an additional 1.35 million shares to cover overallotments, if any.
PREIT intends to use all of the net proceeds, which it estimates will range from $139.7 million to $160.6 million, to repay borrowings under the firm’s 2010 credit facility.
Sperry Van Ness Brokers Sale of Two NY Properties
Sperry Van Ness completed the sale of a freestanding Tops Supermarket in Canandaigua, N.Y. for $8.8 million and the sale of a freestanding Starbucks in Schenectady, N.Y. for $835,300.
Joseph French and Tom Dalzell of Sperry Van Ness in White Plains, N.Y. represented both parties on the Tops sale. Phillips Edison & Co. sold the property to a private investor. French and Neil Golub also represented both parties in the Starbucks sale, which involved two private entities.
Marcus & Millichap Brokers Two Deals
Marcus & Millichap Real Estate Investment Services arranged the sale of 407 Park Ave. in New York, a retail building fully leased to Stefano Ricci, an upscale men’s clothing store. The property commanded a price of $8.7 million, or $2,023 per square foot.
Adelaide Polsinelli, an associate vice president investments, and Steve Siegel, a vice president investments in the Manhattan office of Marcus & Millichap, represented the seller, 407 Park LLC, in this transaction. Glen Kunofsky, a senior vice president investments, and James Ventura a retail investment specialist, represented the buyer, Land Finance Corp.
In a separate deal, Marcus & Millichap announced the sale of 14,550-square-foot Walgreens in Auburn, Calif., for $6.4 million.
Alvin Mansour, an investment specialist in Marcus & Millichap’s San Diego office, had the exclusive listing to market the property on behalf of the seller. Walgreens had signed a 75-year absolute net lease which commenced in 2009.
Colliers International Directs Four Deals
Colliers International recently arranged four retail deals. In the first deal, Colliers directed the sale of an 8,000-square-foot retail property in Yorba Linda, Calif., to Marsburn Trust for $2.7 million. Jereme Snyder, vice president, in Colliers’ Irvine office represented the seller, EmBee Management Inc. The buyer was represented by Michael Lawton of Lawton Real Estate.
Built in 1975, the six-tenant shop-building is a portion of a larger neighborhood center, anchored by Stater Bros. Message Therapy, Picante Grill, Jabez Salon, M&M Smokes, Ameci Italian Kitchen and a dentist office occupy the property.
In another deal, Colliers completed the sale of a freestanding building in Westminster, Calif., to Elevation Equities LLC for $1.2 million. Snyder represented the buyer. The seller, a private investor, was represented by Jon Selznick and Chris Rodriguez of Pacific Commercial Investments.
In a third transaction, Colliers completed the portfolio sale of three single-tenant retail buildings, occupied by 7-Eleven, to Tendwell Realty, a private investor, in three all-cash transactions totaling $3.3 million.
Located in Los Angeles County and San Bernardino County, the well-established, single-tenant properties feature absolute NNN leases guaranteed by 7-Eleven, Inc. Snyder represented the buyer in all three transactions. The seller, Evercore Trust Co., was self-represented.
Finally, Colliers completed the sale/leaseback of a 2,920-square-foot Jack in the Box in Parker, Colo., to DAPRES LLC for $2.4 million. Snyder and Pat Swanson represented the buyer. Jack in the Box was self-represented.
Other Notable Deals
Faris Lee Investments completed the $4.8 million sale of a 10,000-square-foot two-tenant retail property in Temecula, Calif. Jeff Conover, senior managing director, and Richard Walter, president, of Faris Lee Investments represented the seller, Plaza Temecula LLC. The all-cash 1031 Exchange buyer, R&R Real Properties purchased the property at a cap rate of 8.25 percent.
Ryan D. Jumonville purchased Destin City Market in Destin, Fla., for $2.8 million, from developer Jay Odom.
Thompson National Properties LLC acquired a 35,375-square-foot retail property anchored by Staples and Dollar Tree at Irving Square in Irving, Texas, for an undisclosed price.
Willco Cos. joined with two partners to acquire a 50,000-square-foot property in Rockville, Md., for $5.25 million. Situated on a 2.4-acre site, the building is fully occupied by Guitar Center, Inc. The property was purchased from Koob Veneman.
Mid-America Asset Management Inc. recently arranged the sale of an outlot to Sonic at Park Place in Palatine, Ill., a northwest suburb of Chicago. Franchisor Boom Real Estate Development LLC d/b/a Sonic plans to open the drive-in restaurant in fall 2010. Representing the landlord in the sale was Mid-America Vice President Marget Graham and Senior Leasing Representative Katie Hennegan, with Steve Frishman and Brian Adams of Mid-America Real Estate Corp. representing the tenant.
RealtyLink LLC sold a 5,000-square-foot Verizon store located 15 minutes south east of downtown Charlotte. The all cash transaction closed escrow on May 3 for $2.4 million and the unleveraged opportunity buyer was a private investor out of South Carolina.