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Cole Secures $133M Financing

Cole Real Estate Investments has arranged a $133 million mortgage financing with JPMorgan Chase Bank N.A., secured by a portfolio of 32 Albertsons grocery store properties located in key markets in Arizona, New Mexico, Colorado, Texas and Louisiana. The announcement was made by Marc Nemer, president of Cole Real Estate Investments.

The 50 percent loan-to-cost financing has a fixed interest rate of 5.6 percent per annum with interest only for the first five years of the loan term, and a maturity date of January 2018.

The 1.9-million-square-foot retail portfolio was purchased in October 2010 from Albertsons LLC in an all-cash, sale-leaseback transaction for $266 million. The properties are all subject to recently signed 20-year individual NNN leases that also include renewal options.

“This loan is an example of how a track record of conservative financing on strong real estate with long-term lease commitments from exceptional tenants can lead to very favorable terms in the market,” Matthew Donnelly, senior vice president, structured finance, said in a statement

The broker for the transaction was Philip McKnight of Eastdil Secured.

Forest City to Exchange Notes for Shares

Forest City Enterprises Inc. entered into separate, privately negotiated exchange agreements whereby it will exchange $110.0 million aggregate principal amount of its 5.00 percent convertible senior notes due 2016 for a total of approximately 9,774,033 shares of its Class A common stock, including approximately 1,866,199 shares as inducement, plus payment of accrued interest.

The exchange transactions reflect the company's continuing focus on reducing overall leverage and improving its balance sheet. Approximately $90.0 million of the notes will remain outstanding after the exchanges.

HFF Arranges $41.25M Financing

Holliday Fenoglio Fowler L.P. (HFF) arranged $41.25 million in financing for Princeton Forrestal Village, a 550,000-square-foot mixed-use development in Princeton, N.J.

HFF senior managing directors Mike Tepedino and Jon Mikula worked exclusively on behalf of Investcorp International Inc. to secure the five-year, fixed-rate loan from Morgan Stanley. The securitized loan provided acquisition financing and leasehold financing with Princeton University as the lessor under the ground lease agreement.

Princeton Forrestal Village has 10 buildings with 349,239 square feet of office space, 188,198 square feet of retail space comprised of a stand-alone health club and spa (Can Do), two outparcel restaurants (Ruth’s Chris Steakhouse and Salt Creek Grille) and Harmony Day School, plus 11,891 square feet of common area and amenity space. Also included on the site, but not part of the financing collateral, are a Westin Hotel and Conference Center and the Eden Institute. In total, the property is 89 percent leased to 77 tenants.

ING Clarion Acquires Oregon Retail Property

ING Clarion Partners, a leading real estate investment advisory firm, has acquired Woodfield Station, a 145,000-square-foot retail center in Eugene, Ore. for $25.9 million. The purchase was made on behalf of a separate account client.

Woodfield Station’s major tenants include the anchor, Market of Choice, a Eugene-based, 30-year-old grocery with eight stores in Oregon; a Rite Aid drug store; Big 5 Sports; and Office Max.

RCG Acquires Northwoods Marketplace

RCG Ventures LLC, along with its joint venture partner DRA Advisors LLC, acquired the 1972,729-square-foot Northwoods Marketplace located in North Charleston, S.C., for an undisclosed price. The center is anchored by Barnes & Noble, Michaels, Old Navy, Best Buy, Big Lots and Guitar Center. The seller was represented by Faison & Associates. The buyer represented itself.

MIG Real Estate Acquires Vista Commons

MIG Real Estate, a Newport Beach, Calif.-based real estate investment company formerly known as Stoneridge Capital Partners, has acquired Vista Commons, a 99,000-square-foot neighborhood retail center anchored by a 56,000-square-foot Albertson’s supermarket. Terms of the sale were not disclosed.

Vista Commons was built in 2007 in the western Las Vegas community of Summerlin, an established, 25,000-acre master planned community. The center includes Wells Fargo and Bank of America branch banking units in addition to the grocery anchor.

This is the company’s first acquisition under its new name, MIG Real Estate. The firm will serve as the real estate arm of the newly formed MIG Capital (Merage Investment Group), an alternative investment firm operating under the same ownership and management with over $1 billion in assets under management in three principal areas: absolute return, private equity and real estate.

Charles Moore, Michael Newman, Marlene Fujita and George Good of CB Richard Ellis represented the seller in the transaction. MIG Real Estate did not have broker representation.

Plaza Advisors Announces Sale of Shops at Verandah

Plaza Advisors announced the sale of the 72,795-square-foot Shops at Verandah in Fort Myers, Fa. The grocery anchored asset features Publix, Beef ‘O’ Brady’s, Pinch a Penny, Allstate, H&R Block, and separately owned freestanding; Regions Bank, Exxon Mobil, and Wachovia/Wells Fargo. The asset was constructed in 2006. The property was 92 percent leased at the time of sale.

Plaza Advisors represented the buyer in the transaction and co-managing partners Jim Michalak and Anthony Blanco, together with senior financial analyst, Lenard Williams were involved in the engagement. The seller was not represented by a broker. The seller and buyer were The Shops at Verandah Ltd and CR South, respectively.

Agree Realty Announces Recent Deals

Agree Realty Corporation announced a sale and a disposition last week.

In the first deal, Agree acquired a retail property net leased to AT&T located in Wilmington, N.C. for $3.3 million. The newly constructed AT&T store opened for business on November 24th, 2010. The base term of the lease is 15 years.

Agree also announced it has sold two single-tenant properties leased to Borders Inc. located in Tulsa, Oklahoma containing approximately 50,000 square feet. The two properties were sold for a total of approximately $6.7 million.

After the disposition of these properties, the Company’s annualized aggregate rental income from Borders has been reduced by 26 percnet from December 31, 2009 levels. In addition, annualized aggregate rental income from Borders now represents 20 percent of the company’s total rental income as compared to approximately 29 percent as of December 31, 2009.

Other Notable Deals

Barker Pacific Group (BPG) and its financial partner, URDANG, have announced the acquisition investment of a big box retail property in La Quinta, California. URDANG, part of BNY Mellon Asset Management, made its share of the investment through Urdang Value-Added Fund II L.P., a private real estate fund managed by Urdang Capital Management Inc. The building has been vacant since Sam’s Club closed its doors in 2010.

Aztec Group Inc. announced that Howard Taft, senior managing director and Charles Penan, director, represented Adler Group in the sale of a +16 acre development site located in their Pavilion Crossings Development. Pavilion Crossings is a 35-acre, multi-parcel site that is being developed to accommodate in-line retail, office space and outparcels in Brandon, Fla. The site will be developed with a 45,600-square-foot Publix Supermarket and Fifth Third Bank. Development is scheduled to commence February 2011.

Iris S. Wolstein, CEO and president of Heritage Development Co. LLC announced the sale of a single tenant 95,810-square-foot K-Mart shopping center in Clearwater, Florida to Benderson Development Co. for an undisclosed price. K-Mart has been a tenant since the inception of the center which was originally built in 1973.

Sperry Van Ness represented Lou Malnati’s Pizzeria in their acquisition of the 10,665-square-foot building in Chicago.

CB Richard Ellis arranged the sale of a 4,385-square-foot Bank of America branch building in Ft. Lauderdale, Fla., to GJL Riviera LLC for $1.45 million. CBRE brokers, Dave Donnellan, first vice president, and Todd Weintraub, associate, represented the seller.

The Boulder Group completed the sale of a single tenant net leased Tuffy property located in Bourbonnais, Ill., for $760,000. The 4,026-square-foot parcel is 100 percent leased on a short term basis to Tuffy. Randy Blankstein and Jimmy Goodman of The Boulder Group represented the seller, a private real estate owner. The purchaser was an individual investor that purchases vehicle related assets.

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