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Tempe Marketplace Trades for $280M

Vestar Development Co. and Rockwood Capital bought out a partner on the 1.3-million-square-foot Tempe Marketplace in Tempe, Ariz., for $280 million.

In conjunction with the closing, Tempe Marketplace received a new $200 million permanent financing package from GACC. Vestar developed the property and had previously partnered with DLJ/Credit Suisse. Both Rockwood and Vestar made significant investments in the acquisition. Under terms of the deal Vestar will be the managing partner.

“We believe in the real estate fundamentals in the Tempe market and this asset’s ability to provide healthy risk-adjusted returns with limited downside due to strong in-place income," Joel Mayer, head of retail at Rockwood Capital, said in a statement. “And Vestar is the ideal developer to partner with to maximize operations because of their extensive knowledge of the asset and the market.”

Tempe Marketplace is 94 percent occupied.

SL Green Acquires New York City Office and Retail Assets

SL Green Realty Corp. agreed to purchase investments from Gramercy Capital Corp. for an aggregate price of $390.8 million, including the assumption of $265.6 million in debt.

The transactions, which are expected to close within the next 90 days, are subject to the satisfaction of certain conditions.

The transactions include acquisitions by SL Green of the following:

  • A 45 percent joint venture interest in the leased fee of 885 Third Avenue, New York, also known as the Lipstick Building, for approximately $39.3 million, including pro rations, plus assumed mortgage debt of $120.4 million. The transaction consolidates SL Green’s position and will bring the company’s ownership to 100 percent in the joint venture that owns fee and leasehold interests in the property. Based upon the purchase price, the implied total value of SL Green’s interest is $352.0 million.
  • A 45 percent joint venture interest in the leased fee of 2 Herald Square, New York, for approximately $25.6 million, including pro rations, plus assumed mortgage debt of $86.1 million. The transaction consolidates SL Green’s position and will bring the company’s ownership to 100 percent in the leased fee. Based upon the purchase price, the implied total value is $247.5 million.
  • The entire leased fee interest in 292 Madison Avenue, New York, for approximately $19.2 million, including pro rations, plus assumed mortgage debt of $59.1 million.

All of the above assets are leased to third party operators.

The companies also announced a $38.7 million mezzanine loan secured by equity interests in 601 West 26th Street, New York, also known as the Starrett-Lehigh Building, supplementing an existing SL Green investment in the property.

Equity One Prices Common Stock Offering

Equity One Inc. priced an underwritten public offering of 8.0 million shares of its common stock on December 8, 2010, at a price to the public of $16.90 per share. The company also granted the underwriters a 30-day option to purchase up to an additional 1.2 million shares of common stock to cover overallotments, if any. The offering was made pursuant to the company’s effective shelf registration statement and settlement is expected to occur on or about December 14, 2010. The offering will result in net proceeds to the company of up to $156 million, exclusive of closing costs.

In addition and concurrently with the closing of the public offering, MGN America LLC, an entity affiliated with the company’s largest stockholder, Gazit-Globe Ltd., will purchase directly from the company 900,000 shares of common stock at the public offering price, resulting in net proceeds to the company of approximately $15.2 million.

Equity One intends to use the net proceeds for the repayment of indebtedness, including outstanding mortgage debt on a property to be acquired as part of the Company’s previously disclosed acquisition of C&C (US) No. 1 Inc. through a joint venture with Liberty International Holdings Ltd., and/or for general corporate purposes, including acquisitions.

Barclays Capital Inc. is acting as sole book running manager for the offering.

M&M Team Sells Sixth Washington Walgreens Since May

Marcus & Millichap Real Estate Investment Services brokered the sale of a 14,469-square foot, 24-hour Walgreens drugstore in Alexandria, Va. The sales price of $10.6 million represents $731 per square foot.

Dean Zang and Mark Taylor, vice presidents investments in the firm’s Philadelphia office, represented the seller, PACE-Beacon Hill LLC. Phil Sambazis, a senior associate in the firm’s San Diego office, represented the buyer, a New York-based private investor. David Feldman of the firm’s Washington, D.C. office also provided representation.

Zang and Taylor have brokered the sale of six Washington, D.C., metropolitan area Walgreens drugstores since May for four different local and national development companies.

The properties are:

  • 6717 Richmond Highway in Alexandria, Va.: 14,469 square feet; $10.6 million or $731 per square foot
  • Boswell Avenue and Richmond Highway in Alexandria, Va.: 14,469 square feet; $7.9 million or $546 per square foot
  • 5585 Twin Knolls Road in Columbia, Md.: 14,820 square feet; $6 million or $410 per square foot
  • 326-328 Amherst St. in Winchester, Va.: 13,200 square feet; $5.9 million or $444 per square foot
  • 6400 Hoadly Road, Manassas, Va.: 14,550 square feet; $7.6 million or $522 per square foot
  • 498 Ritchie Highway, Severna Park, Md.; 14,784 square feet; $9.5 million or $645 per square foot

Marcus & Millichap has two more Walgreens drugstores under contract in the Washington, D.C. metropolitan area.

HFF Announces Recent Deals

The New Jersey office of Holliday Fenoglio Fowler L.P. (HFF) arranged a $17.8 million refinancing for the 113,178-square-foot Veteran’s Square Shopping Center in Lyndhurst, N.J.

HFF senior managing director Jon Mikula and director Michael Klein worked exclusively on behalf of the Hampshire Cos. to secure the 10-year, fixed-rate loan through Nationwide Life Insurance Co.

Completed in 2000, Veteran’s Square Shopping Center has five retail buildings that are 90 percent anchored by ShopRite and Staples and feature a traditional mix of in-line retailers including GNC, Supercuts and Go Wireless. The property has approvals in place for up to a 30,000-square-foot expansion.

In a separate deal, HFF’s Boston office arranged a $9.2 million construction loan for a to-be-built, 85,188-square-foot BJ’s Wholesale Club in Pittsfield, Mass.

HFF directors Janet Krolman and Greg LaBine and senior real estate analyst Lauren O’Neil worked exclusively on behalf of the borrower, a joint venture between Saxon Partners and Cape Breton Corp. to secure the loan through Sovereign Santander Bank.

The BJ’s Wholesale Club will include a free-standing building plus a fueling station.

Westcore Sells El Cajon Property

Westcore Properties sold the 79,797-square-foot Main Street Plaza retail center in downtown El Cajon, Calif., for $17.9 million. The center, which includes tenants such as Ross Dress For Less and 24 Hour Fitness, is fully leased.

In the transaction, Westcore Magnolia Avenue Investors LLC, dba Westcore Properties, was represented by Mike Moser, Gleb Lvovich, Todd Goodman, Phil Voorhees, Preston Fetrow and Kirk Brummer of CB Richard Ellis. The buyer, RS Partner L.P., represented itself and plans to hold the property as an investment.

Main Street Plaza was acquired by Westcore Properties in 2009. Following the acquisition, Westcore Properties completed significant improvements to the center including a modern façade, a newly paved parking lot, new roof and HVAC units.

C&W Completes Two Deals

Cushman & Wakefield’s southeast capital markets group announced the sale of Madeira Shopping Center, located in Pinellas County. Mark Gilbert, executive vice president, Adam Feinstein, executive director, Eric Williams, senior financial analyst, and Mitchell Halpern, financial analyst, of Cushman & Wakefield’s Miami office, marketed and executed the sale assignment.

The team sold Madeira Shopping Center on behalf of Madeira Beach CRP LLC, an affiliate of Ram Development Co. The purchaser was Lakeland-based Publix Super Markets Inc.

Originally developed in 1957 and substantially renovated in 1999, Madeira Shopping Center totals 80,167 square feet and features a tenant line-up led by Publix, Walgreen’s and McDonald’s.

In a separate deal, the San Diego office of Cushman & Wakefield announces that Jonathan and Laura Pool purchased a 7,400-square-foot retail shopping center in La Mesa, Calif. for $980,000.

The seller, Carol M. Devore, Trustee of the Leonard H. Devore Trust, was represented by Kyle Clark and Kipp Gstettenbauer of Cushman & Wakefield. The buyers represented themselves.

Other Notable Deals

Jones Lang LaSalle completed the sale of the 406,845-square-foot Bradley Square Mall in Cleveland, Tenn., to Baton Rouge, La.,-based MD Ruston Properties LLC on behalf of a special servicer. The Atlanta-based retail investment sales team of Jones Lang LaSalle Managing Directors Kris Cooper and Margaret Caldwell handled the sale and marketing of the mall, which is anchored by Belk, JCPenney, Sears and Kmart.

Bianco Properties of St. Louis recently acquired the 13,412-square-foot Midway Commons Shopping Center in Farmers Branch, Texas for an undisclosed price. Businesses at the center include Saxby's Coffee, Meringue Bakery, Mango's Noodle House, Yourway Burgers, Freshberry Yogurt and Fedex Office. Sean Byrne of the Byrne Company represented the seller, Vista Properties.

A French investment group acquired a bi-level retail condominium at 54 Bond Street, N.Y., currently leased to two upscale clothiers Rogan and Billy Reid, and on the lower level to the Cire-Trudon, the first American store of France’s oldest candle manufacturer, for $5.5 million. Eastern Consolidated director Jerome Benayoun both represented the seller, New York-based real estate developer Adam Gordon, and procured the first time buyers.

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