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Federal Realty Closes $400M Credit Facility

Federal Realty Investment Trust announced the closing of a new $400 million unsecured revolving credit facility.

Proceeds from the financing were utilized to retire the outstanding obligations under the Trust's previous $300 million revolving credit facility which was scheduled to mature on July 27, 2011 and for general corporate purposes.

As a result of the refinancing, the firm has no additional debt maturities until July 2012. The new revolving credit facility bears interest at an annual rate of LIBOR plus 115 basis points and will mature in July 2015, with an option to extend for an additional year. In addition, Federal Realty has an option to upsize the facility through an accordion feature to $800 million.

Wells Fargo Securities LLC and PNC Capital Markets LLC acted as lead arrangers for the facility. Capital One N.A., Royal Bank of Canada and US Bank N.A. acted as co-documentation agents. Bank of America N.A., BBVA Compass Bank, Chang Hwa Commercial Bank Ltd., Citigroup Global Markets, Deutsche Bank Trust Co. Americas, First Commercial Bank Ltd. (New York branch), JP Morgan Chase Bank N.A., Regions Bank, Sovereign Bank, SunTrust Bank and TD Bank N.A. are all lenders for the transaction.

"Strong demand for Federal Realty's credit from high-quality financial institutions allowed us to establish a new pricing standard for comparable REIT deals in the current market," Andrew Blocher, Federal Realty CFO and senior vice president, said in a statement. "We continue to be disciplined with our balance sheet, providing us with better capital access at advantageous rates to pursue appropriate growth opportunities through operations, development and acquisitions."

Inland Real Estate Acquisitions Acquires Arkansas, Wisconsin Centers

Inland Real Estate Acquisitions Inc. acquired two retail properties in Arkansas and Wisconsin for a combined $48.3 million.

Approximately $24.5 million went toward the acquisition of the Fairgrounds Crossing shopping center in Hot Springs, Ark., and the remainder, approximately $23.8 million, was paid for the purchase of Shoppes at Prairie Ridge, a shopping center in Pleasant Prairie, Wis. The properties were acquired on behalf of Inland Diversified Real Estate Trust Inc.

Lou Quilici, senior vice president of Inland Real Estate Acquisitions, facilitated the purchase of the 155,206-square-foot Fairgrounds Crossing, which is anchored by Best Buy, Dick’s Sporting Goods and Bed Bath & Beyond.

Additional tenants at Fairgrounds Crossing include Michaels, PetSmart, Subway and SportClips. The property is shadow-anchored by a Sam’s Club, which was not purchased as part of this transaction.

Mark Cosenza, vice president of Inland Real Estate Acquisitions, facilitated the purchase of Shoppes at Prairie Ridge. The tenant line-up also includes Dick’s Sporting Goods and PetSmart, as well as JC Penney and Ulta. It is shadow-anchored by a Target, which was not purchased as part of this transaction.

In an unrelated deal, Inland Western Retail Real Estate Trust Inc.acquired Sawyer Heights Village in a joint venture with RioCan REIT.

Sawyer Heights Village, a 107,626-square-foot power center located just outside the central business district in Houston, was purchased for approximately $35 million.

Sawyer Heights Village is anchored by Staples and PetSmart and shadow-anchored by Target. The addition of Sawyer Heights Village brings Inland Western’s presence in the Houston market to more than 1.5 million square feet under management.

M&M Closes $44M in Strip Center Sales

Alvin Mansour of Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has arranged the sale of 11 shopping strip centers throughout the United States in the past year valued at nearly $44 million. The properties are located in Mississippi, Utah, Texas, Illinois, California, Kentucky and North Carolina.

Mansour, a senior vice president investments and senior director of Marcus & Millichap’s national retail group, represented the sellers in these 11 separate transactions. The sellers were developers and family trusts, while the buyers were private investors.

“The strip center segment has presented its share of challenges,” Mansour said in a statement. “But it is improving steadily, along with the entire retail sector and lending market. As we continuously expand our already deep access to a pool of investors nationwide, more private buyers will vie for these strip centers – even in secondary and tertiary markets.”

In Los Angeles, Mansour closed the largest strip center transaction – which totaled $8.8 million. The 18,498-square-foot strip center is anchored by CVS, Starbuck’s and L&L Hawaiian Barbecue.

Mansour also arranged the sale of Turtle Creek Corner, a 119,334 square-foot retail center in Hattiesburg, Miss. The 98-percent occupied property is triple-net-leased to several national credit tenants including Lowe’s, TJ Maxx, H&R Block and others.

In addition, Mansour negotiated the sale of Riverton Depot, a fully leased retail center in Riverton, Utah. Tenants at the 32,384-square foot asset include Staples, Dollar Tree and Shoe Carnival.

Heights Corner in Forth Worth, Texas, a Chick-Fil-A and Starbucks-anchored center, traded at a 7.68 percent cap at more than $442 per square foot.

The Market at Byram, a 69,054-square foot neighborhood center anchored by Vowell’s Marketplace, sold to a private investor in Byram, Miss.

Shops at Liberty Plaza in Crystal Lake, Ill., a neighborhood center with regional tenants, traded for just north of $302 per square foot.

A Starbucks and Jimmy John’s anchored strip center in Louisville, Ky., closed at $575 a square foot to a private 1031 exchange buyer based in California.

Mansour also arranged the sales of:

  • • An 8,930-square foot strip center in Cedar Hill, Texas, anchored by Verizon Wireless and Sears.
  • • Shoppes at Indigo Trails, a 12,500-square foot retail asset in Queen Creek, Ariz.
  • • A 4,930-square foot strip center in Concord, N.C., anchored by T-Mobile.

Providing additional representation on the aforementioned transactions were Brent E. Yurtkuran, a senior associate in the Jackson, Mississippi office; Greg A. Moyer, a senior vice president investments in the Chicago office, Richard Bird, regional manager of Marcus & Millichap’s Salt Lake City office; and Allen Smith, a vice president investments in the Charlotte, N.C., office.

HFF Closes Sale; Arranges Financing

HFF announced two retail deals last week—an acquisition and a financing.

In the larger deal, HFF closed the sale of the former Old Spanish Village development site in Coral Gables, Fla.

HFF marketed the development site on behalf of the seller, FirstBank Puerto Rico. Agave Holdings LLC purchased the property for $30.55 million. Legal representation for the buyer and seller consisted of Bilzin Sumberg and Holland & Knight, respectively.

Old Spanish Village is a 5.8-acre mixed-use development site that is entitled for nearly 700,000 square feet of residential and retail uses.

The HFF sales team representing FirstBank Puerto Rico included executive managing director Manuel de Zárraga, directors Luis Castillo and Jaret Turkell and real estate analyst Scott Wadler.

In a separate deal, HFF secured financing for Station Landing, a “new urbanism” mixed-use project with residential, retail and office components in Medford, Mass.

HFF worked on behalf of the borrower, National Development and ASB Capital Management Inc. to secure three separate loans.

A fixed-rate loan was placed with Cornerstone Real Estate Advisers for the residential and retail portion, which includes Arborpoint @ Station Landing, 75 Station Landing and the Boston Sports Club facility. Cambridge Savings Bank provided the adjustable-to-fixed-rate loan for the office portion of the project and Middlesex Bank provided financing for the 1,982-space parking garage.

Station Landing includes: Arborpoint @ Station Landing, which has 292 luxury apartments, 67,017 square feet of retail and a 4,863-square-foot retail outparcel leased to Kelly’s Roast Beef; 75 Station Landing, which was completed in 2009 and has 168 class-A apartments plus 8,594 square feet of retail leased to Margarita’s Restaurant; a 50,000-square-foot Boston Sports Club; a 161,983-square-foot office building at 101 Station Landing; and a 1,982-space parking garage. Located at the intersection of Routes 28 and 16 at Wellington Circle, Station Landing is adjacent to the Wellington MBTA Station in Medford, five miles north of downtown Boston and just east of Interstate 93.

The HFF team representing National Development and ASB Capital Management, Inc. was led by senior managing director Fred Wittmann and senior real estate analyst Porter Terry.

Excel Trust Disposes of Six Assets

Excel Trust Inc. completed the disposition of six triple-net assets on June 30, 2011 for a total of approximately $39.6 million, resulting in a net gain of approximately $3 million.

The six properties sold were Walgreens in Corbin (South), Ky.,, Walgreens in Barbourville, Ky., Walgreens in Beckley, W.Va., Walgreens in Princeton, W.Va., Shop ‘n Save (SuperValu) in Ballwin, Mo., and Jewel-Osco in Morris, Ill.

Regency Centers Purchases Calhoun Commons for $21M

Regency Centers closed on the acquisition of Calhoun Commons, a 66,150-square-foot neighborhood shopping center anchored by Whole Foods Market.

The property was purchased in an off-market transaction for $21 million from Calhoun Commons Shopping Center L.P., a subsidiary of Doran Cos. and the original developer of the property.

Built in 1999, Calhoun Commons is a class-A shopping center anchored by a 49,471-square-foot Whole Foods Market, along with national retailers such as Chipotle Mexican Grill, Caribou Coffee, Ben & Jerry’s and Noodles & Company.

The fully-leased center produces strong retail sales and high historical occupancy with more than 94 percent of the gross leasable area occupied by first generation tenants.

Cassidy Turley BRE Commercial Facilitates TIC Exchange

Cassidy Turley BRE Commercial announced that San Diego-based TIC NCT Villa Sangria LLC sold its tenant-in-common interest in National City Tower, a 40-story, class-A office building located in Louisville, Ky., and exchanged that interest into three single-tenant drug store properties.

The $14 million exchange involved a Walgreens store in Hendersonville, N.C., a Walgreens store in Hurricane, W. Va. and a CVS store in Cobleskill, N.Y. Each store is approximately one to two years old. Individual store sale prices were not available.

Westwood Financial Sells Colorado Center

Westwood Financial Corp. sold the 34,749-square-foot Heritage Hills Shopping Center in Lone Tree, Colo., as part of its efforts to strengthen its strategic investment in new Southeastern U.S. markets. The retail property was in Westwood Financial’s portfolio for 11 years and sold to Carlisle Properties for $11.4 million.

The 18-unit Heritage Hills Shopping Center was built in 1999 and currently is 96-percent leased. Tenants there include Safeway, Perfect Teeth, Front Range Family Eye Care, Papa Johns, Subway, Heritage Hills Wine & Spirits, Executive Tans Swimwear and Great Clips. Westwood Financial was represented by Cushman & Wakefield’s Patrick Devereaux and Gene Pride in the deal.

RKF Completes Union Square Retail Condo Sale

RKF Investment Sales & Advisory Services completed the sale of the 2,928-sf retail condominium at the base of 123 Third Ave., the 19-story new residential condominium building situated at the southeast corner of East 14th Street in Union Square.

The 123 Third Ave. retail condominium, which features 126 feet of wraparound frontage, is fully occupied by Capital One Bank and was sold for $11.05 million.

RKF Executive Vice Presidents Jeff Fishman and Ariel Schuster, along with Director Brian Segall and Analyst Jonathan Butwin, served as the exclusive agents for the seller, 123 Third Avenue Partners LLC, and also represented the buyer, a private investment group.

Other Notable Deals

Goodman Real Estate Services Group LLC represented a private buyer at the auction of the141,900-square-foot Painesville Commons Shopping Center in Painesville, Ohio. Kyle Hartung, associate and director of investment sales, and Rob Yaskanich, associate, represented the buyer in this transaction.

Mid-America Real Estate-Michigan Inc. announced the sale of a 55,000-square-foot building in Lyon Town Center in South Lyon, Mich. Richard Kerwin of Mid-America Real Estate-Michigan represented the buyer Topeko Inc. and the seller Lyon Creek LLC with Bill Wright and Ben Wineman of Mid-America Real Estate Group in this transaction.

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