Equity One Inc. priced its underwritten public offering of 5.0 million shares of its common stock on May 18 at $19.42 per share. The company also granted underwriters a 30-day option to purchase up to an additional 750,000 shares of its common stock. Equity One intends to use the net proceeds from the transaction to reduce the outstanding balance under its unsecured revolving credit facility.
In addition, MGN (USA) Inc., an entity affiliated with Equity One’s largest stockholder, Gazit-Globe Ltd., agreed to purchase directly from the company an additional 1.0 million shares of common stock in a private placement transaction to be consummated simultaneously with, and subject to the closing of, the public offering, at a price equal to the public offering price.
Barclays Capital is serving as the book running manager for the offering.
In a separate transaction, Equity One Inc. acquired a fee interest in a retail condominium at 161 W. 16th St. in Manhattan for $55 million. The property contains 56,870 square feet of space and is unencumbered. It currently houses Loehmann’s, whose lease will expire in March 2016.
“This transaction is consistent with our strategy of acquiring irreplaceable urban retail locations with below market leases that allow for future growth,” said Jeff Olson, CEO of Equity One, in a statement. “We believe there is enormous potential for this site and are thrilled to add this property to our growing New York metropolitan portfolio.”
Cole Completes $245M in Acquisitions in Second Quarter
Cole Real Estate Investments completed approximately $246 million in acquisitions since the start of the second quarter 2011. The company acquired 59 retail centers totaling 1.4 million square feet. Among these were 58 net-leased single-tenant assets valued at $185 million, including a portfolio of 32 casual dining restaurants owned by Buffets Inc., four CVS drugstores, nine Walgreens, four Office Depot stores and two grocery stores.
In addition, Cole acquired two multi-tenant properties valued at $56 million, including the 334,000-square-foot Oxford Exchange in Oxford, Ala.
Cole has a goal of completing $3 billion in acquisitions by the end of 2011, including $1.5 billion in single-tenant retail assets and $750 million in multi-tenant retail assets.
“The beginning of the year saw increased supply and accelerated activity as sellers have introduced more high-quality single-tenant properties to the market,” said Thomas W. Roberts, executive vice president and head of real estate investments at Cole, in a statement. “Based on our conservative acquisition strategy of acquiring necessity real estate assets that are subject to long-term net leases with creditworthy tenants, we have been able to capitalize on market opportunities, and add to our expanding portfolio of core retail properties.”
Urstadt Biddle Extends $30M Secured Revolving Credit Facility Until 2014
Urstadt Biddle Properties Inc. entered into an amendment of its existing $30 million secured revolving credit facility with the Bank of New York Mellon to extend the maturity date of the facility to May 16, 2014. The facility was originally scheduled to expire on April 15, 2011. Under the terms of the new agreement, the interest rate on borrowings increased to Libor plus 2 percent from Libor plus 1.75 percent, and the un-used fee increased to 0.40 percent from 0.25 percent. All the remaining conditions of the facility remain unchanged. The facility is secured by mortgages on Danbury Square in Danbury, Conn. and Valley Ridge in Wayne, N.J.
“We are pleased to announce the three-year extension of our $30 million secured revolving credit facility,” said Willing Biddle, president and COO of Urstadt Biddle, in a statement. “This facility, coupled with our $50 million unsecured credit facility with the Bank of New York Mellon and Wells Fargo N.A., continues to give the company adequate cash resources and liquidity to achieve its acquisition objectives for the foreseeable future.”
George Smith Partners Arranges $19.2M Refi for Los Angeles Shopping Center
George Smith Partners arranged a $19.2 million cash-out refinance of an existing bridge loan on Sylmar Towne Center, a 150,000-square-foot grocery-anchored center in Los Angeles. The non-recourse loan features a 5.39 percent interest rate, 71 percent loan-to-value ratio, a 10-year term and a 30-year amortization schedule. In addition, the borrower required the new lender to release a parcel of land adjacent to the center that was previously encumbered as collateral.
David Rifkind, principal and managing director of George Smith Partners, along with Eric Hamermesh and Loren Bodella, negotiated this transaction.
The center’s tenants include Ralph’s Grocery, Big Lots, CVS and Kragen Auto Parts.
LNR Partners Sells Village Mall
LNR Partners Inc. sold the Village Mall, a 480,759-square-foot regional mall in Danville, Ill., to Tabani Group. The property was free and clear of debt.
Village Mall was completed in 1978 and renovated in 1999. It is currently 64 percent leased. Tenants at the center include Elder-Beerman, Sears, Covington Foods and AMC Theatres.
Jaime Fink and Jeff Bramson, of Holliday Fenoglio Fowler LP, represented the seller in the transaction.
Cohen Commercial, DRA Advisors Buy Missouri Shopping Center
A joint venture of Cohen Commercial Properties and DRA Advisors acquired Mark Twain Shopping Center, a 300,000-square-foot open-air shopping center in St. Charles, Mo. Anchors at the property include Bass Pro Shops, Gordman’s Department Store and Aldi’s. Currently, there are approximately 30,000 square feet of available space at the center, in addition to the potential to develop more than four acres of adjacent land.
Kimco Buys Atlanta Shopping Center in a $13.7M Deal
Institutional investors advised by J.P. Morgan Asset Management sold the Village Shoppes of Flowery Branch, a 92,985-square-foot grocery-anchored shopping center in Atlanta, Ga., to Kimco Realty Corp. for $13.7 million. Kimco also assumed an existing mortgage loan on the property.
The Village Shoppes of Flowery Branch was completed in 2002. Publix anchors the property, which is currently 92 percent leased.
Richard Reid and Jim Hamilton, of Holliday Fenoglio Fowler, represented the seller in the transaction.
Lucescu Realty to Open New Office in Las Vegas
Lucescu Realty closed approximately $500 million in retail property transactions and opened a new office in Las Vegas. Most recently, the firm negotiated the sale of Park West Place, a 757,000-square-foot power center in Stockton, Calif., for $92.5 million, and the sale of Gilroy Crossing, a 474,000-square-foot power center in Gilroy, Calif., for $68.5 million.
Lucescu’s new Las Vegas office will be headed by Frank J. Marretti III as its managing director. Marretti has brokered and developed projects totaling more than $1 billion throughout Nevada. Prior to joining Lucescu Realty, he founded Cielo Properties Inc., a Las Vegas-based development, brokerage and construction firm.
Other Notable Deals
Linear Retail Properties LLC purchased East Greenwich Commons, a 41,233-square-foot retail center in East Greenwich, R.I. for $8 million. The center was developed in the late 1950’s, with a second building constructed in the 1970’s. Tenants at the property include CVS, Starbucks, Webster Bank and Coldwell Banker, among others. Geoff Millerd, of Cushman & Wakefield, negotiated this transaction.
NorthMarq Capital arranged a $5 million first mortgage for Tatum Ranch Shopping Center, a 31,001-square-foot retail center in Cave Creek, Ariz. The loan featured a 10-year term and a 25-year amortization schedule. It was arranged through Thrivent Financial. James DuMars, senior vice president, and Michael Elmore, executive vice president with NorthMarq Capital, negotiated this transaction.
Banco Popular N.A. sold a 43,242-square-foot, one-story shopping center in Gardena, Calif. to Young Kim, a private value add developer, for $2.55 million. The center was built in 1952, with a second building added in 1988, and was 50 percent vacant at the time of the sale. It was previously sold in 2006 for $8.5 million, but the bank later foreclosed on the borrower. Christopher Maling and David Maling, senior vice presidents with Colliers International, negotiated this transaction.
Next Realty Mid Atlantic negotiated the sale of Clinton Gardens, a 40,000-square-foot neighborhood shopping center in Clinton, Md. Walgreens, Office Depot and TD Bank anchor the property. Next Realty Mid-Atlantic assembled three separate parcels on behalf of ownership for the development, including a 35-acre parcel out of bankruptcy. It also worked with Prince George’s County and the local community to make sure the project met community objectives. George Galloway handled the transaction on behalf of Next Realty. Mike Gorsage, principal of HR Retail, marketed the center for sale.
Rosebriar Properties acquired a 38,500-square-foot strategic infill site at Preston Center in Dallas, Texas in an all cash transaction. The site lies in close proximity to dining, shopping and entertainment venues. Bill Hanks, Ryan Stewart and Adam Sumrall, of Rosebriar, negotiated this transaction. The firm has been focusing on built-to-suit and development projects in the Dallas area for the past 18 months.
A Chicago-based private partnership sold a single tenant net leased PNC Bank property in Crystal Lake, Ill. to a private high net worth investor for $2.675 million. The 3,216-square-foot building is fully leased to the bank on a long-term basis. Randy Blankstein and Jimmy Goodman, of The Boulder Group, represented both parties in the transaction.
Arthur and Alyce Wilson sold a 13,300-square-foot retail center in San Diego, Calif. to Yardage Town, a local family-owned fabric and sewing business, for $1.93 million. Rex Huffman, of Voit Real Estate Services, represented the sellers in the transaction. Tim Mills, of Cushman & Wakefield, represented the buyer.
Bayview Loan Servicing sold 3758 W. Fullerton Ave., a 450-square-foot retail unit in Chicago, Ill., to Salil Guatam. Daniel J. Hyman, president of Millennium Properties R/E Inc., and Brad Thompson, vice president, represented both parties in the transaction.