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Net Lease Capital Closes $237M 1031 Exchange

Net Lease Capital closed on the $237 million sale of 49 CVS drugstores to an undisclosed client.

Net Lease Capital provided the portfolio as replacement properties to be used in a 1031 exchange transaction. The portfolio consisted of CVS properties located across the country, which were desirable because of the corporate guarantee of rent payments offered by CVS Caremark Corp., which carries an investment grade credit rating (S&P BBB+). The corporate guarantee means that rent payments for all the properties are guaranteed over the entire life of their long-term leases, regardless of how well the individual properties perform.

Additionally, because of the triple net leases on each of the properties, CVS Caremark Corp. maintains responsibility for all of the operating and capital expenses of the properties, including upkeep, property taxes and insurance expenses, as well as expenses for roof and structure, so that the buyer will enjoy passive ownership of the properties.

Inland Real Estate Acquisitions Purchases White Oak Shopping Center

Inland Real Estate Acquisitions Inc., the purchasing arm of The Inland Real Estate Group of Companies Inc., acquired the White Oak Shopping Center in Garner, N.C. on behalf of Inland American Real Estate Trust Inc. for $95 million. Matt Tice, vice president of Inland Real Estate Acquisitions, facilitated the transaction.

This is Inland Real Estate Acquisitions’ eighth transaction with this seller over the last four years, all of which have been facilitated by Ryan Shore and Doug Hazelbaker with the Dallas office of HFF.

The property was built in 2002 and includes 549,000 square feet of retail space. The tenant lineup includes BJ’s Wholesale, Kohl’s, Dick’s Sporting Goods, Ross Dress for Less, Best Buy, Staples and TJMaxx. White Oak Shopping Center is shadow anchored by Super Target, which was not purchased as part of this transaction.

Taubman to Acquire Chinese Consultancy

Taubman Centers Inc. and TCBL Consulting Limited announced a definitive agreement whereby Taubman Asia is acquiring a 90 percent controlling interest in TCBL, a leading Beijing-based retail real estate consultancy with more than 200 staff across seven offices in mainland China. The new company, Taubman TCBL, will combine the local insights and network of TCBL with the global industry expertise and reputation of Taubman Centers.

Under the terms of the agreement, the total consideration for the transaction is $24 million, subject to final closing adjustments. Taubman Asia will pay approximately $12 million in cash for its controlling interest in TCBL and will credit the noncontrolling owners with approximately $12 million of capital in the newly formed company.

Taubman Asia will fund any additional capital required by the business and will receive a preferred return on any such capital contributed. The ownership agreements provide for the distribution of preferred returns on capital as well as returns of all such capital prior to the sharing of profits on relative ownership interests. The transaction has been approved by the board of directors of each company and is expected to close by October 2011, subject to government approval and necessary registration.

After the acquisition, the new company will be named Taubman TCBL with its China headquarters to remain located in Beijing. René Tremblay, president of Taubman Asia, will serve as chairman of Taubman TCBL, while Thomas Tam – currently TCBL’s joint managing director – will be appointed president and CEO of Taubman TCBL. Lawrence Wu, current joint managing director of TCBL, will join the Taubman TCBL board. Taubman TCBL will serve as a platform through which Taubman’s future investments in mainland China will be made, giving Taubman Asia a 90 percent ownership interest in these investments.

Regency Purchases Rockridge Center

Regency Centers, closed on the acquisition of Rockridge Center, a 125,213-square-foot neighborhood shopping center anchored by Cub Foods. The property was purchased in an off-market transaction on August 8 for $20.5 million from private real estate development company Hempel Properties.

Remodeled in 2006, Rockridge Center is 99 percent occupied and is anchored by an 89,219-square-foot Cub Foods. The center further benefits from a strong line-up of national retailers including Caribou Coffee, Qdoba Mexican Grill, Papa Murphy’s, Subway and Fantastic Sam’s.

This acquisition follows the recent purchase of Calhoun Commons, a 66,150-square-foot neighborhood center anchored by Whole Foods Market, in Minneapolis. Calhoun Commons was acquired in July from the property’s original developer Doran Cos.. With the acquisition of Rockridge Center, Regency’s Minneapolis portfolio includes five retail centers totaling more than 674,000 square feet.

RKF Completes Retail Condo Sale

Robert K. Futterman & Associates recently completed the sale of the 4,000-square-foot retail condominium at 11 West 51st St. at the base of the Jewel Hotel, near the entrance to Rockefeller Center between Fifth and Sixth Avenues in Midtown. The retail condominium, which sold for $17.5 million, is fully leased to Banco Popular.

RKF Executive Vice President Jeff Fishman, Senior Managing Director Mark Kapnick, Director Brian Segall, and Analyst Jonathan Butwin were the exclusive agents for the seller,11 West 51 Realty LLC. RKF also represented the buyer, Samson 51 LLC.

In a separate transaction, Kapnick arranged the 4,000-square-foot lease of the Jewel Hotel’s Lower Level space beneath Banco Popular to Spanish tapas restaurant Lizarran on behalf of Masterworks.

Westwood Sells Terravita Marketplace to Whitestone

Westwood Financial Corp. sold the 102,733-square-foot Terravita Marketplace to Whitestone REIT for $16.1 million, or $157 per leasable square foot.

Jan Fincham and Pat Dempsey of Lee & Associates Phoenix represented Westwood Financial in the all-cash transaction. The 21-unit, 1997-built asset currently is 92-percent leased. Tenants include Albertson’s, Walgreens, The Good Egg, Ultra Cleaners, Bed Mart, Sesame Inn, UPS Store and Wells Fargo.

M&M Brokers Sales of North Carolina Center

Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has arranged the sale of Sunset Lake Commons, a shopping center located in Holly Springs, N.C., for $12.8 million, which represents $145 per square foot.

Daniel A. Molloy, a vice president investments in the firm’s Atlanta office and Brad Nathanson, a vice president investments in the Philadelphia office, represented the seller, the original developer of the property, Raleigh-based J&H of Holly Springs LLC. Nathanson and Molloy also represented the buyer, The Rosen Group Inc. Allen Smith, Marcus & Millichap’s broker of record for North Carolina, assisted in the transaction.

Built in 2005, the center is 97 percent occupied and anchored by a 48,000-square-foot Harris Teeter. The property also features 32,000 square feet of small shop space and two pad sites.

Other Notable Deals

NMC El Evado LLC sold a 12,900-square-foot single-tenant property occupied by CVS in Victorville, Calif., for $7.95 million to 14426 Palmadle Rd. LLC. Built in 2010 and featuring a long-term absolute NNN 25-year lease, the sale set amounted to $616 per square foot and a 6.5 percent cap rate. Nick Coo and Dennis Vaccaro of Faris Lee Investments represented the seller while Hamid Soroudi and Kimberly Roberts Stepp of Charles Dunn Co. represented the buyer.

Baceline Investments LLC, a Denver-based private equity real estate investment management company with holdings in the Midwest, Rocky Mountain and Southwestern regions of the U.S., purchased the 53,423-square-foot Bridgewood Plaza, in Des Moines, Iowa, in an all-cash transaction for $4.7 million. Baceline bought the property at a 10.2 percent cap rate. The center is 78 percent occupied.

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