Cedar Shopping Centers Inc. closed on the purchase of the 148,000-square-foot Cross Keys Place shopping center in Sewell, N.J. on behalf of the joint venture between Cedar (20 percent) and RioCan REIT (80 percent) for approximately $26.3 million, exclusive of closing costs and adjustments.
Cross Keys Place is a 100 percent leased shopping center, completed in 2007, anchored by Bed, Bath & Beyond, Sports Authority, AC Moore, Old Navy and Petco tenancies. The property is shadow-anchored by a 118,000-square-foot Home Depot store.
The property was acquired at an ingoing yield in excess of 8 percent. Cedar's share of the purchase price, at approximately $5.3 million, was funded primarily from the Company's credit facility for stabilized properties.
The joint venture expects shortly to place 10-year fixed-rate financing on the shopping center at an interest rate of less than 5 percent in an amount equal to approximately 55 percent ($14.6 million) of the purchase price. The joint venture partners' equity funding for the property would be refunded proportionately at completion of such financing.
Cedar will provide property and financial management, leasing, reporting, financing and construction management services for the property and has also received certain acquisition fees. The Cedar/RioCan joint venture has completed closings of more than $250 million in shopping center properties in 2010 to date.
Brookfield Taps Charles Dunn to Lease 7th & Fig
Brookfield Office Properties appointed the downtown Los Angeles office of Charles Dunn Co. Inc. as the exclusive retail leasing company for Brookfield’s 7th&Fig shopping center.
Charles Dunn’s Senior Managing Directors Ted Slaught and Kevin Dee will be the exclusive agents for the property.
7th&Fig at Ernst & Young Plaza is a three-level, 330,000-square-foot open-air shopping center that includes a 2.5-acre open air plaza. Located in the heart of the Los Angeles financial district, the center features a host of name retail tenants including Morton’s Steakhouse, California Pizza Kitchen and Gold’s Gym.
Primestor Buys Development Site
Atlantic-Firestone LLC, an investment arm of Primestor Development, has acquired a 28-acre tract at 4635 Firestone Boulevard and 8653 Atlantic Boulevard in the city of South Gate, Calif., with a plan to create a regional retail and entertainment center that will serve as a catalyst for further development in the area.
The property was acquired by Primestor’s Primestor-Platinum Urban Opportunity Fund I LP, an investment vehicle formed this year by the developer.
The site was first developed as early as 1928 by Ameron, a concrete pipe manufacturer. During the 1940s, the area fronting Firestone Boulevard was developed with a gasoline station, restaurant and machine shops. Ameron ceased operations in 2005, and most of the structures on the site were demolished. The recent adoption of the South Gate General Plan 2035 includes the idea of redeveloping such underutilized industrial uses to “a retail, entertainment and transit-oriented mixed-use district that serves as a visual gateway to South Gate.”
Marcus & Millichap Completes Two Deals
Marcus & Millichap Real Estate Investment Services announced it arranged two sales—one on an auto dealership and another on a drugstore.
In the first deal, the firm arranged the $11 million sale of a 37,646-square-foot Jaguar/Land Rover automobile dealership in Houston.
Christopher Maling, a first vice president investments and David Maling, a vice president investments, both in the Los Angeles office of Marcus & Millichap, represented the seller, a Texas-based developer. James Mitchell, a senior associate in the Washington, D.C. office, represented the buyer, a Charlotte, N.C. publically traded corporation. Brent Smith, regional manager of the firm’s Houston office, also provided representation in this transaction.
In the second deal, the firm completed the sale of a fee simple Rite Aid in Marietta, Ga., for $3 million.
Tim Giambrone, vice president - investments and director of Marcus & Millichap’s national retail group in Atlanta, represented the buyer, a private investor out of New York.
The property was secured by a NNN lease having a primary term of 20 years with 15 years remaining.
HFF Arranges $10.5M Refinancing
The Los Angeles office of Holliday Fenoglio Fowler L.P. (HFF) arranged a $10.5 million refinancing for the 47,697-square-foot Haven Village retail strip center in Rancho Cucamonga, Calif.
HFF director Chris Vittetoe and senior managing director Paul Brindley worked on behalf of the borrower to secure the five-year, fixed-rate loan through Ladder Capital Finance. The securitized loan refinanced an existing CMBS loan.
Haven Village is 83 percent leased and shadow-anchored by Von’s and Trader Joe’s.
Other Notable Deals
Cohen Financial secured $2.5 million in acquisition financing for the 12,829-square-foot Shops B at Lakes Town Center in Tempe, Ariz. The property is currently 91 percent leased. Shops B anchor tenants include Chipotle Mexican Grill and a T-Mobile store. Brandon Harrington, vice president in Cohen Financial’s Phoenix office, secured a 10-year, fixed-rate loan with a 20-year amortization from a life insurance company for Tempe Shops B LLC.
The Boulder Group completed the sale of a 5,738-square-foot triple net leased Chili’s in Kansas City, Mo., for $1.6 million. Chili’s is on a 20-year lease. The Chili’s franchisee, the seller, was represented by Eric Gonsher of the R.H. Johnson Co.
Rob Hervey, executive vice president and senior managing director of NorthMarq Capital’s Los Angeles regional office, arranged a $950,000 first mortgage for a 9,040-square-foot Pier 1 Imports in Jensen Beach, Fla. Financing was based on a 7+7+7 year term and a 25-year amortization schedule and was arranged for the borrower by NorthMarq through its correspondent relationship with StanCorp Mortgage Investors LLC.
The Woodmont Co. represented LNR Partners in the sale of the 12,722-square-foot Maple Crossing shopping center in Dallas. The buyer was a partnership managed by Merritt Capital Partners Ltd. Brad Cruickshank, vice president of investment sales at Woodmont represented LNR.