Retail Traffic

HFF Arranges $125M Refinance of Meadowood Mall

HFF arranged a $125 million refinancing for Meadowood Mall, a regional mall in Reno, Nev.

HFF worked on behalf of the borrower, Meadowood Mall SPE LLC to secure the 10-year, fixed-rate loan through Goldman Sachs Commercial Mortgage Capital L.P. The loan is replacing maturing debt on the property. Meadowood Mall LLC includes entities partially owned by Simon Property Group/The Mills Limited Partnership.

Anchors at the mall include Macy’s South, Sports Authority, Macy’s North, JCPenney and Sears.

The HFF team representing the borrower included executive managing director John Pelusi, managing director Claudia Steeb and director Tina Derderian.

Equity One Acquires California Center for $115M

Equity One Inc. announced the acquisition of Culver Center for $115 million.

Culver Center is a 216,578-sq.-ft. community shopping center which is 99 percent leased and anchored by Ralph’s, Best Buy, and Bally Total Fitness. The center was developed in the 1950s and is situated on 9.7 acres. The surrounding trade area has a population of 278,500 people living within three miles and an average household income of $86,000.

Simon Sells $1.2B of Senior Notes

Simon Property Group Inc. announced that its majority-owned partnership subsidiary, Simon Property Group L.P. has agreed to sell $1.2 billion of its senior unsecured notes in an underwritten public offering through Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Merrill Lynch, Pierce, Fenner & Smith Inc., Deutsche Bank Securities Inc., Goldman, Sachs & Co. and Morgan Stanley & Co. LLC, as joint book-running managers and Mitsubishi UFJ Securities Inc., RBC Capital Markets LLC, SMBC Nikko Capital Markets Ltd., SunTrust Robinson Humphrey, Inc. and U.S. Bancorp Investments Inc., as co-managers. The offering consists of $500.0 million of 2.800 percent notes due 2017 and $700.0 million of 4.125 percent notes due 2021. The offering is expected to close on November 16, 2011.

The operating partnership intends to use the net proceeds from this offering to partially repay the outstanding U.S. dollar balance of its senior unsecured credit facility and for general business purposes.

Cypress Arranges $57.3M for Bassett Place

Cypress Equities has closed on loans related to Bassett Place, a 591,000-sq.-ft. mall in El Paso, Texas.

CIBC Inc. has provided the borrower, Bassett Place Real Estate Co. LLC, with a $49.3 million senior loan—$44 million was funded at the time of closing and the remaining $5.3 million is available for future leasing activity. The borrower also secured $8 million in mezzanine financing through lender RCG Longview.

A portion of the future funding component will allow for the improvements associated with two newly executed leases with Dollar Tree and Shoe Carnival. These new retailers will join David’s Bridal in one of the existing outparcel buildings.

Dollar Tree, a single price point variety retail store selling general merchandise including food products, has negotiated a lease to occupy 11,327 sq. ft. Shoe Carnival will assume a 13,751-sq.-ft. space for the sale of men’s, women’s and children’s footwear, plus athletic sportswear and apparel.

Bassett Place is a 591,000-sq.-ft. single-level regional shopping mall that opened in 1962 as an open-air concept and was originally known as Bassett Center. The center was enclosed in 1973 and underwent renovations in 1973, 1996, 2004 and 2007. Bassett Place is anchored by Kohl’s, Target Greatland, Premiere Cinema 18 and shadow anchor Costco Wholesale (not included in the overall center square footage). Bassett Place is now 93 percent leased.

NorthMarq Arranges Three Mortgages for Retail Properties

NorthMarq Capital announced three recent mortgage financings on retail properties for a cumulative $29.1 million.

In the largest deal, Ronald Reese, senior vice president and managing director of NorthMarq’s Dallas regional office, arranged first mortgage financing of $14 million for The Arbors Shopping Center, a 224,662-sq.-ft. retail center in Dallas. Financing was based on a 10-year term and a 25-year amortization schedule and was arranged for the borrower, Preston Road Associates Ltd., by NorthMarq through its correspondent relationship with State Farm Life Insurance Co.

In the second deal, David Mott, senior vice president of NorthMarq’s Dallas regional office, arranged financing of $7.55 million for Gulfgate Square Shopping Center, a 70,642-sq.-ft. retail center in Houston. Major tenants at the center are Conn’s and Office Depot. Financing was arranged for the borrower by NorthMarq through its relationship with Wells Fargo CMBS Platform.

In the last deal, James V. DuMars, senior vice president and managing director of NorthMarq’s Phoenix regional office, arranged first mortgage refinancing of $7.55 million for a grocery-anchored center located adjacent to the upscale Kierland master-planned community in Scottsdale, Ariz. The asset consists of 19,245 sq. ft. of retail space along with a Fry’s Food and Drug containing 60,658 sq. ft. for a total of 79,903 sq. ft. Financing was based on a 5-year term with 18-months interest-only and then a 25-year amortization schedule and was arranged for the borrower by NorthMarq through its relationship with Wells Fargo Bank.

Faris Lee Arranges Two Sales for $25.1M

Faris Lee Investments announced the completion of two retail property sales.

In the first deal, Faris Lee completed the $15.43 million sale of a 76,712-sq.-ft. single-tenant retail property occupied by Kohl’s in Upland, Calif. Built in 1978 and renovated in 2009, the property is situated on just under seven acres. The property is located within Mountain Green center that includes other retailers such as Trader Joes and CVS.

Rich Walter, president, and Donald MacLellan, senior managing director, of Faris Lee Investments represented the seller, a Lubert–Adler Management West partnership based out of Los Angeles, as well as the buyer, YFP Kohls Upland LLC, also from Los Angeles.

There are about 17 years remaining on Kohl’s lease.

In the second deal, Faris Lee announced the $9.7 million sale of Baldwin Park Towne Center in Los Angeles. Built in 1987, the 24,605-sq.-ft. multi-tenant retail property includes GameStop, Verizon, AT&T, Adriana’s Insurance and Tortas Sinaloa Restaurant as tenants. The property also benefits from the fact that it is co-occupied by such national tenants as Home Depot, McDonald’s, Denny’s, and a Marriott Courtyard Hotel.

Matthew Mousavi and Nicholas Coo of Faris Lee Investments represented both the seller, Baldwin Park Plaza LLC, and the buyer, GDA Cos.. Both the buyer and seller were involved in a 1031 exchange. At approximately $400 per sq. ft., this was the highest price per square foot sale in this region of Los Angeles County for the past three years, per CoStar.

Webster Bank Finances $21.3M for Westchester Shopping Center

Webster Bank announced today that it has provided $21.3 million in construction and permanent financing for a new, 100,000-sq.-ft. retail center on Tarrytown Road in Tarrytown, N.Y.

The loan will finance the ground-up construction of a Super Stop & Shop and retail center, led by the New York-based Robert Martin Co. and Halpern Organization. Ground has been broken and construction completion of the first phase is estimated for spring 2012.

Phillips Edison – ARC Shopping Center REIT Inc. Acquires Baltimore Center

Phillips Edison – ARC Shopping Center REIT Inc. acquired Burwood Village Center, a 105,834-sq.-ft. shopping center located in Glen Burnie, Md., for $16.6 million. Burwood Village Center is anchored by Food Lion, one of the top grocers in the area, which is on a long term lease through October 2022. Other key tenants include Dollar General, CVS Pharmacy and Dunkin Donuts. The shopping center is 98.3 percent occupied.

This transaction represents the third grocery-anchored property acquisition for the company in the fourth quarter of 2011. This property, along with other properties previously acquired, are expected to be contributed to the PECO-ARC Institutional Joint Venture I, which was announced last month.

CBRE Sells New Hampshire Center

The Boston office of CBRE’s national retail investment group announced the sale of New London Shopping Center, a 107,310-sq.-ft. Hannaford Bros. supermarket-anchored shopping center in New London, N.H.. The property is fully occupied.

The CBRE team of Chris Angelone, executive vice president/partner, Bill Moylan, executive vice president/partner, Jim Koury, executive vice president/partner, Nat Heald, vice president and Josh Klimkiewicz, vice president, represented the seller Kimco Realty Corp. and procured the buyer Crosspoint Associates. The shopping center closed for $15.73 million.

Other Notable Deals

American Realty Capital New York Recovery REIT Inc. acquired a fee-simple interest in a portfolio of four retail condominiums located on 416-424 Washington Street in the Tribeca neighborhood of Manhattan, New York, for a purchase price, excluding acquisition costs, of approximately $9.86 million. The portfolio consists of four retail condominiums situated on Washington Street at its intersection with Laight Street and contains a total of approximately 24,000 sq. ft. The portfolio is 100 percent leased. The four leases have maturities ranging from 2015 to 2030.

HFF secured $4 million in financing for the refinance of Hulen Square, an 83,402-sq.-ft. retail center in Fort Worth, Texas. Working exclusively on behalf of Cencor Realty Services, HFF placed the five-year, fixed-rate, non-recourse loan with ViewPoint Bank. The loan’s interest rate will reset at the end of year five for an additional five years.

Faison announced the sale of Northlake Commons, a specialty retail center that Faison developed in 2005 at the Northlake Mall. David Lampke, of Faison, handled the transaction for the seller. The purchaser, Northlake Commons LLC, a joint venture of Ferncroft Capital LLC and Crow Holdings, was represented by John Hollmeyer.

Cohen Financial, a national real estate capital services firm, today announced that it has secured $3.125 million in acquisition financing for The Promenade Shopping Center located in Emeryville, Calif. Kenneth M. Fox, a managing director in Cohen Financial’s San Francisco office, originated the transaction and secured the fixed rate financing. The lender was Symetra Life Insurance Co. via its local mortgage correspondent, Newmark Realty Capital Inc.

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