N3 Real Estate formed Delton Retail Fund, a $200 million real estate investment and development fund to expand N3’s net lease portfolio in the U.S. retail real estate market. The fund is a joint venture between N3, which is headed by A.D.G. van Dam, of the Netherlands, and Alex Shnaider, a Toronto-based co-founder of the Midland Group. N3 Real Estate, the advisor to the fund, is leveraging its relationships with American retailers to offer new store development with long term triple net leases. N3 will oversee site acquisitions and construction to the retailers’ specifications.
“The Delton Retail Fund’s commitment will allow us to continually grow to meet current and future tenants’ development needs, as well as boost our ability with our other investors to close on larger sale-leaseback transactions,” said William “Biff” McGuire, N3’s CEO, in a statement.
The introduction of the Delton Retail Fund combines with $50 million in equity being raised by Rainier Capital for Net Lease Retail Partners LP, a joint venture with N3. As such, N3 will have the capacity to develop and acquire approximately $400 million in retail real estate over the next two to three years.
Jamestown Buys Alameda Towne Centre for $181M
Jamestown Properties purchased Alameda Towne Centre, a 595,000-square-foot retail property on Alameda Island, Calif. from Harsch Investment Properties for $181 million, or $304 per square foot. Jamestown paid $69.6 million of the purchase price in cash, and $111.4 million in debt arranged through Prudential Mortgage Capital Co.
Alameda Towne Centre is an open-air center located on a 23-square-mile island in San Francisco Bay. It currently has an occupancy rate of 91 percent and is anchored by a Safeway grocery store. Other tenants at the property include TJ Maxx, Kohl’s, Trader Joe’s and Petco. Harsch Investment started redevelopment efforts at the center in 2002. Jamestown plans to complete the redevelopment project within the next 18 months.
Equity One Forms Joint Ventures, Buys Three Shopping Centers
Equity One Inc. formed joint ventures with Vestar Development Co. and Rockwood Capital. The ventures purchased three distressed shopping centers in two separate transactions contemporaneously with the repayment of mortgage loans secured by the properties. Equity One invested approximately $37.3 million of equity in the ventures. In addition, Equity One and Vestar made a $35 million secured bridge loan to one of the ventures.
The first transaction for the ventures involved the acquisition of Talega Village Shopping Center and Vernola Marketplace in California. Talega Village Shopping Center is a 102,282-square-foot grocery-anchored shopping center in San Clemente. It is 93 percent occupied. Vernola Marketplace is a 210,963-squre-foot power center in Mira Loma. It is 82 percent occupied, with anchors including Ross Dress for Less and Bed Bath & Beyond. The two centers are owned through a 50/50 partnership between Equity One/Vestar and Rockwood Capital, the original owner of the projects. Equity One has a 95 percent interest in the Equity One/Vestar venture.
The second transaction for Equity One ventures involved the acquisition of Canyon Trails Towne Center in Goodyear, Ariz. Canyon Trails is a 211,581-square-foot power center anchored by Ross Dress for Less, Petsmart and Office Max. It is currently 56 percent occupied. Canyon Trails Towne Center also comes with entitlements to build an additional 312,847 square feet of space. Equity One has a 90 percent interest in this venture.
“This portfolio provided Equity One with an opportunity to team up with Vestar to purchase three shopping centers at a substantial discount to the original cost of the properties,” said Jeff Olson, CEO of Equity One, in a statement. “The properties are well located with strong anchor tenants. Vestar is one of the premier retail developers on the West Coast. We have known the Vestar principals for almost 20 years and we are delighted to be working with them again.”
Federal Realty Makes $66M Florida Acquisition
Federal Realty Investment Trust acquired Tower Shops, a 372,000-square-foot community center in Davie, Fla., for $66.1 million. The property sits on 67 acres of land and offers significant opportunity for redevelopment and expansion. Current anchors at the center include Ross, TJ Maxx, DSW, Michaels and Navy.
Hanley Investment Closes $50M in Investment Sales
Hanley Investment Group Real Estate Advisors sold four retail properties for more than $50 million in total. The properties collectively contained 130,000 square feet of space. The transactions included:
The sale of Gateway Village, a 96,959-square-foot center in Chino Hills, Calif., from DSB Properties to Stuart Tanz, of Retail Opportunity Investments Corp. , for $34 million. Edward B. Hanley, president of Hanley Investment Group, represented both parties in the transaction.
The sale of a 14,991-square-foot Walgreens store in Riverside, Calif. from Arlington-Van Buren Investment LLC to RW WG Riverside LLC for $8.7 million. Eric P. Wohl, Jeremy S. McChesney and William B. Asher negotiated this transaction;
The sale of a 13,490-square-foot Walgreens in Oklahoma City, Okla. from MAC-122 LLC to PW WG Riverside LLC for $5.94 million. Eric P. Wohl represented the buyer in the transaction. Gary Gregory and Cathy Jo See, of Sperry Van Ness, along with Tony Alanis, of Net Leased Real Properties, represented the seller.
The sale of Le Verne Plaza, a 6,630-square-foot center in La Verne, Calif., from The Christ Trust of Newport Beach to 1487 Foothill LLC for $1.7 million. Eric P. Wohl represented the seller in the transaction. Sarkis Der Sarkissian, of Sarkis Realty Inc. , represented the buyer.
Marcus & Millichap Negotiates New Retail Sales, Arranges Loan for a Walgreens
Marcus & Millichap Real Estate Investment Services negotiated the sale of Windsor Crossing, an 80,009-square-foot boutique shopping center in East Windsor Township, N.J. from Windsor Crossing West #4 LLC to East Windsor Crossing LLC for $14.5 million, or $181 per square foot. Marcus & Millichap’s Brad Nathanson and Christopher Munley, along with Michael Fasano, represented both parties in the transaction.
Windsor Crossing was completed in 2008. The center is part of a master-planned development that includes 102 single-family homes, a 110,000-square-foot Home Depot and a 142,000-square-foot Walmart.
Marcus & Millichap also negotiated the sale of a 64,500-square-foot building in San Antonio, Texas for $4.4 million, or $68 per square foot. Interceramic Tile & Stone Gallery currently occupies the property. Alvin Mansour and Phil Sambazis, of Marcus & Millichap, represented the seller in the transaction.
In addition, Marcus & Millichap Capital Corp. arranged a $4.77 million credit-tenant lease loan assumption on a Walgreens store in San Antonio, Texas. The 25-year loan features a 6.38 percent fixed interest rate and a 25-year amortization schedule, with a loan to value ratio of 86 percent. Tim Kinney, of Marcus & Millichap, negotiated this transaction.
Inland Buys Dollar General Portfolio for $8.5M
Inland Real Estate Acquisitions Inc. acquired a portfolio of nine Dollar General stores for approximately $8.5 million. The stores are located throughout Alabama and Georgia. The properties were completed in 2010. All are 100 percent leased on a triple-net basis to Dollar General Corp. The stores range in size from 9,000 square feet to 10,600 square feet.
Joe Cosenza, president of Inland Real Estate Acquisitions and vice chairman of Inland Real Estate Group of Companies Inc., facilitated the purchase on behalf of Inland Diversified Real Estate Trust Inc.
Other Notable Deals
Colliers International’s Atlanta capital markets group arranged a $4.5 million refinancing for Glenmary Plaza, a 41,765-square-foot retail center in Louisville, Ky. The property has an occupancy level of 88 percent, with tenants including Outback Steakhouse and Sherwin-Williams, among others. Ohio National provided the non-recourse fixed-rate loan. Forrest Speed, vice president with the Atlanta capital markets group, arranged this transaction.
Faris Lee Investments negotiated the sale of a 10,200-square-foot retail property in San Bernardino, Calif. from Camden Holdings LLC to Thompson Co. in a 1033 exchange transaction for $3.85 million. The property closed at a 7.31 percent cap rate.
The property currently houses Davita Dialysis, which has a 15-year, triple-net lease with two five-year extension options. Jeff Conover, senior managing director with Faris Lee, represented the seller in the transaction. Susan Harris, of CAG, represented the buyer.
CB Richard Ellis negotiated the sale of Yucaipa Heights Center, a 13,262-square-foot retail property in Yucaipa, Calif., for $1.5 million. The center was sold out of REO in an off-market transaction. Yucaipa Heights is currently 100 percent vacant. Brokers in CBRE’s Newport Beach, Calif. office helped negotiate the transaction.
Sperry Van Ness LLC auctioned off a 5,770-square-foot retail building in Alsip, Ill. Laurie Ramirez acted as lead advisor on the transaction, while Louis Fisher was responsible for marketing.