RioCan REIT, a Canadian owner of shopping centers, has quietly built up a 14.3 percent stake in U.S. shopping center REIT Cedar Shopping Centers Inc.. Most recently, as a result of a recent Cedar public offering of 7.5 million shares of its common stock, RioCan agreed to purchase 1.25 million additional shares to go along with 6,666,666 shares at $6.00 it previously purchased and warrants on an additional 1,428,570 shares at $7.00 per share.
In connection with Cedar's previously announced transaction with RioCan, subject to certain exceptions, RioCan contractually has the right to purchase its pro rata interest, up to approximately 14.6 percent of any new shares of common stock proposed to be sold by Cedar. The purchase price for the shares is the same as the $6.60 per share net offering price in Cedar's public offering, resulting in proceeds to Cedar of approximately $8.25 million. The proceeds will be used to repay amounts outstanding under Cedar's secured revolving credit facility for stabilized properties.
The firms also have a joint venture that recently purchased the 127,636-square-foot Town Square Plaza shopping center in Temple, Pa., for approximately $18.9 million. The price works out to $153 per square foot or an 8.02 percent cap rate. Marcus & Millichap Real Estate Investment Services brokered the sale. Brad Nathanson, a vice president investments and director of the firm’s National Retail Group in Philadelphia, represented the seller, Newman Development Group, and the buyers.
HFF Arranges $48M Construction Loan for Brooklyn Shopping Center
The New York office of Holliday Fenoglio Fowler L.P. (HFF) arranged a $48 million construction loan for the 256,783-square-foot Canarsie Plaza under construction in Brooklyn, New York.
HFF senior managing director Mike Tepedino and director Steven Klein worked exclusively on behalf of the borrower, a joint venture between Acadia Strategic Opportunity Fund II, LLC and P/A Associates, to secure the loan through M&T Bank and Capital One Bank.
Due for completion in November 2010, Canarsie Plaza is pre-leased to anchor tenant BJ’s Wholesale Club and a New York City department. Approximately 44,000 square feet of space will be available for local, regional and national tenants.
Investec Acquires San Diego Center
Investec acquired the 100,000-square-foot The Plaza at Sunbow in San Diego for approximately $21 million. The center is anchored by Ralphs and CVS/pharmacy, along with a host of national retailers including Starbucks, McDonald's, KFC and T-Mobile. The transaction was sourced by Investec as an off-market acquisition opportunity from a private investor.
Cushman & Wakefield Sonnenblick Goldman Arranges $18.2M Financing
Cushman & Wakefield Sonnenblick Goldman, serving as the exclusive advisor to an affiliate of Centro Properties Group, arranged an $18.2 million senior loan secured by a portion of the 425,000-square-foot Freshwater-Stateline Plaza shopping center in Enfield, Conn.
The property anchored by Costco, Home Depot, Dick's Sporting Goods, and Dollar Tree. The new loan is secured by the entire center, with the exception of the Home Depot property, which is not owned by Centro.
Joint Venture Acquires Maryland Shopping Center
In what the buyers called the largest retail sector transaction in the Washington, D.C. metropolitan region in more than two years, a team of investors led by JBG Rosenfeld Retail acquired the 390,000-square-foot Village at Waugh Chapel in Gambrills, Md., for an undisclosed price.
The new ownership is comprised of four entities: JBGR; JBG’s Funds VI and VII; and Buvermo Investments. The property was originally developed by Greenberg Gibbons. The sellers, institutional clients advised by Prudential Real Estate Investors, were represented by Bill Kent and Gary Lawrence of CB Richard Ellis.
Financing for the acquisition was provided by Northwestern Mutual Life Insurance Co.
Other Notable Deals
FV Brookhurst Square LLC purchased the 44,000-square-foot Mile Square Plaza in Fountain Valley, Calif. for $11 million. Kevin McNeil, managing director, and Karen Munroe, assistant director, in the Orange County office of commercial real estate services firm Studley, represented both parties in the transaction.
Garrette Matlock and Jon Hendrickson of the Matlock Group at Marcus & Millichap announced the sale of the 122,446-square-foot Coalmine Shopping Center in Littelton, Colo., for approximately $10 million. The property is 92 percent occupied. The Matlock Group exclusively listed the property on behalf of the owners, Westwood Financial Corp. Rothenberg and Rosenfield Inc. bought the center.
PMC Houston Retail Operating LLC sold a 4,297-square-foot building, at the Greenway Commons Shopping Center leased to Bank of America in the Inner Loop River Oaks retail submarket of Houston. Ryan West of CB Richard Ellis represented the seller in the transaction.