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TIAA-CREF Purchases New York Retail Condo

TIAA-CREF, the financial services organization, has purchased the retail condominium at 2300 Broadway in a sales transaction brokered by international commercial real estate services firm Studley.

The property, at the northeast corner of 83rd Street, features 9,300 sq. ft. above grade and a 5,200-sq.-ft. basement is long-term leased to national retailers Chico’s and Charles Schwab.

According to market sources, the purchase price was more than $40 million.

“This purchase is consistent with the growing trend of institutional investors pursuing retail assets in New York City Woody Heller, executive managing director and head of Studley’s capital transaction group said in a statement.

The seller in the transaction was the Bromley Companies, which had developed the retail and accompanying residential condominium tower in the 1980s, one of the first major new developments on the Upper West Side at that time.

Heller, together with Will Silverman and Eric Negrin of Studley’s capital transactions group, represented the Bromley Companies in the sale.

Federal Realty Acquires Controlling Interest in Plaza El Segundo

Federal Realty Investment Trust announced the acquisition of a controlling interest in Plaza El Segundo, a 381,000-sq.-ft. retail property in El Segundo, Calif. along with a 100 percent interest in an adjacent, unimproved 8.1-acre land parcel for future development.

At closing, the Federal paid cash consideration of $8.5 million for Plaza El Segundo and assumed its pro-rata share of an existing $175 million mortgage loan secured by the property, and will receive approximately 75 percent of the cash flow associated with the operating property.

"Plaza El Segundo is a great addition to our California portfolio and will complement our ownership and tenant relationships on Third Street Promenade as well as Santana Row", commented Jeff Berkes, president West Coast Region. "We've recently opened a Southern California office which, along with the acquisition of Plaza El Segundo, will facilitate our growth in California."

Plaza El Segundo is comprised of three distinct shopping districts: The Plaza, a 273,000-sq.-ft. community shopping center anchored by Whole Foods, Best Buy, Home Goods and Dick’s Sporting Goods, The Collection, a 53,000-sq.-ft. lifestyle center featuring tenants such as Anthropologie, J Crew, Banana Republic, H&M and MAC Cosmetics, and The Edge, which offers 55,000 sq. ft. of small shops, boutiques, restaurants and service uses.

In addition, Federal Realty acquired an 8.1-acre, unimproved land parcel immediately adjacent to Plaza El Segundo for $15.9 million. The site has existing entitlements for 70,000 sq. ft. of retail and restaurant space. Pending site plan approvals and market conditions, construction could commence in 2013.

MMG Equity Partners Completes Financing of Eight Retail Florida Properties for $43M

MMG Equity Partners completed financing for eight retail properties in the state of Florida.

The properties are:

  • Bird Thirteen LLC – a 44,689-sq.-ft. shopping center located on Bird Road and 144th Ave, tenants include Navarro Discount Pharmacy, Starbucks and T-Mobile. Loan amount $7.48 million financed by Ocean Bank.
  • SVSC – a 53,000-sq.-ft. shopping center located on Sunset Drive and 107th Ave. Tenants include Navarro Discount Pharmacy and T-Mobile. Loan amount $10.2 million financed by Ocean Bank.
  • Ponce Two LLC – a free-standing 25,000-sq.-ft. building located at 3949 SW 8 ST occupied by Navarro Discount Pharmacy. Loan amount $4.59 million financed by Ocean Bank.
  • NDPRE #14 LLC - a free-standing 8,500-sq.-ft. building located at 18500 Collins Ave occupied by Navarro Discount Pharmacy. Loan amount $2.03 million financed by Ocean Bank.
  • NDPRE #15 LLC – a free-standing 7,000-sq.-ft. building located at 631 71 ST, Miami Beach occupied by Navarro Discount Pharmacy. Loan amount $2.04 million financed by Ocean Bank.
  • NDPRE #16 LLC – a free-standing 4,000-sq.-ft. building located on Kendall Drive and 97th Ave in Miami occupied by T-Mobile. Loan amount $2.2 million financed by Ocean Bank.
  • Harbour Village Holdings LLC – a 113,000-sq.-ft. shopping center located on Atlantic Blvd and San Pablo Road in Jacksonville. Owned through a JV with Global Fund, Harbour Village is anchored by The Fresh Market and Stein Mart. Loan amount$9 million financed by ING.
  • Pine Plaza Holdings LLC – a 238,000-sq.-ft. shopping center located on Pine Island Road and 44th Street in Sunrise. Owned through a JV with Global Fund, Pine Plaza is anchored by Winn-Dixie, Frank Theatres, and Family Dollar. Loan amount$6.2 million financed by Wells Fargo.

As per Gabriel Navarro, principal of MMG, loan proceeds will be used to finance additional retail acquisitions and loan purchases in Florida.

Terramar Acquires Canyon Park Place for $35M

Terramar Retail Centers LLC has acquired Canyon Park Place, a 130,786-sq.-ft. neighborhood retail center in Bothell, Wash., in an off-market transaction.

The center, prominently located within the I-405 corridor at the intersection of 228th Street and Bothell-Everett Highway, is anchored by a 45,772-sq.-ft. QFC grocery and an 11,948-sq.-ft. Bartell’s Drug.

The seller was a Seattle-based, family investment company that has owned and operated the center since they originally developed it in 1990. The seller was advised by Terry Moss of Commercial Realty Group Inc.

Phillips Edison – ARC Shopping Center REIT Inc. Completes Seeding Phase of PECO-ARC Institutional Joint Venture I L.P.

Phillips Edison – ARC Shopping Center REIT Inc. has completed the seeding of the recently announced PECO-ARC Institutional Joint Venture I with the contribution of the Burwood Village Center to the joint venture. The joint venture also directly acquired an additional property, Cureton Town Center. The two transactions were added to the fund at an aggregate gross asset value of $30.9 million.

In the first transaction, completed December 21, 2011, Phillips Edison – ARC contributed its ownership interest in the Burwood Village Center, a grocery-anchored shopping center located in Glen Burnie, Md. The contribution value of Burwood Village Center (defined as the property’s gross asset value) was $17.0 million.

The joint venture then acquired Cureton Town Center, a 74,557-sq.-ft. grocery-anchored shopping center located in Waxhaw, N.C., for $13.9 million. The shopping center is anchored by Harris Teeter on a long-term lease through March 2027. Other key tenants include Fifth Third Bank, SunTrust Bank, Great Clips, Papa John’s, and Moe’s Southwest Grill. Cureton Town Center is 91.9 percent occupied.

Under the terms of the joint venture agreement, Phillips Edison – ARC and its partners will contribute approximately $109 million of equity capital, of which Phillips Edison – ARC will contribute approximately $59 million and its partners will contribute $50 million. The Joint Venture plans to leverage this capital with 50 percent debt financing to reach an approximate $218 million in acquisition capacity in order to purchase well-located grocery-anchored shopping centers.

HFF Arranges $29M Financing; Closes Sale

HFF announced two recent retail deals.

In the first deal, HFF arranged $29 million in financing for Cordova Commons and Tradewinds Shopping Center, retail centers totaling 354,245 sq. ft. in Pensacola, Florida.

HFF worked on behalf of the borrowers, VIF II Cordova Associates LLC and VIF II Tradewinds Associates LLC to secure the five-year, floating-rate loan through U.S. Bank N.A. The borrowers are both joint ventures of GMH Capital Partners and AEW Capital Management L.P. Loan proceeds were used to retire existing debt on both properties and provide funding for the releasing of a vacant K-Mart store.

Cordova Commons, which was renovated in 2008, is a 175,691-sq.-ft. community shopping center anchored by Stein Mart and Petco. Tradewinds Shopping Center is a 178,554-sq.-ft. community shopping center. Renovated in 2007, the property is 91 percent occupied and is anchored by TJ Maxx, JoAnn Fabrics, Shoe Station and Dollar General.

The HFF team representing the borrowers was led by senior managing director Paul Stasaitis and director Chris Drew.

In a seprate deal, HFF closed the sale of approximately 153,000 sq. ft. at Cleveland Towne Center, a 348,599-sq.-ft. shopping center in Cleveland, Tenn., shadow-anchored by Target and Kohl’s.

HFF marketed the property on behalf of the seller, Cleveland Towne Center LLC, a joint venture partnership between Batson-Cook Development Co. and Warren Commercial Real Estate. Cole Real Estate Investments purchased Cleveland Towne Center in an all-cash transaction.

The property is anchored by Target (shadow), Kohl’s (shadow), Bed Bath & Beyond, Ross Dress For Less, Michaels, Electronic Express and Books-A-Million. BCDC developed Cleveland Towne Center in 2008. The property was 91 percent leased at the time of sale.

The HFF investment sales team representing Cleveland Towne Center LLC was led by managing directors Jim Hamilton and Richard Reid.

George Smith Partners Arranges $16M in Construction Financing

Commercial real estate investment banking firm George Smith Partners has arranged $16 million in construction financing for DJM Capital Partners Inc., whose affiliate is the owner of the Bella Terra Shopping Center in Huntington Beach, Calif., according to Principal and Managing Director Steve Bram and Senior Vice President David Pascale. The construction loan will allow DJM to create a big-box retail pad for new tenant Costco Wholesale Corporation.

Costco signed a 30-year ground lease with DJM requiring the company to provide a construction ready pad on which the retailer will build its new Costco store. The construction included DJM demolishing a 120,000-sq.-ft. former Montgomery Ward’s Department Store, a 80,000-sq.-ft. former Mervyn’s store, as well as adding utility lines, bays for gasoline tanks and raising the retail pad four feet to create a foundation for the new store. DJM is also building a 467-unit apartment complex adjacent to the Bella Terra Shopping Center and Costco site which has been presold to UDR.

The 15-month term, interest-only, full-recourse construction loan was priced at an interest rate of LIBOR + 3.75 percent with no floor. The construction lender also provided a 5 year mini perm option. However, the client has since forward rate-locked a permanent take-out loan arranged by GSP. This loan has a mid 4 percent interest rate and is scheduled to close in the 2nd quarter of 2012.

Other Notable Deals

Marcus & Millichap Real Estate Investment Services brokered the sale of Crossroads Marketplace, a 71,167-sq.-ft. retail center in Warner Robins, home of the Warner Robins Air Logistics Center, Georgia’s largest employer in a single location. The sales price of $11.25 million represents $158 per square foot. Daniel “Sonny” Molloy, a vice president investments in Marcus & Millichap’s Atlanta office, represented the seller, Citizens Square LLC, a Georgia limited liability company. Molloy also provided representation to the buyer, Cole Real Estate Investments.

Cassidy Turley BRE Commercial, completed the sale of College Park Center in Tempe, Ariz. New York-based Kimco Realty purchased the 62,293-sq.-ft. retail center for $10.5 million from College Park Shopping Center LLC and CP Shopping Center II LLC. College Park Center was 97.6 percent occupied at the time of sale. The tenants include Whole Foods, McDonalds, H&R Block, Verizon, Edward Jones, Jimmy John’s, Qdoba Mexican Grill and Starbuck’s. Senior Vice Presidents Ryan Schubert and Michael Hackett with Cassidy Turley BRE Commercial’s Retail Capital Markets Group and Senior Vice President Cliff Johnston and Vice President Brent Mallonee with Cassidy Turley BRE Commercial’s Retail Group executed the sale transaction on behalf of both parties.

Agree Realty Corp. acquired a Wawa convenience store and fuel station in Baltimore, Md. as well as a Walgreens pharmacy in Fort Walton Beach, Fla., and a CVS pharmacy in Leawood, Kan., during December 2011. The average remaining lease term for the three acquisitions is 15 years. The aggregate cost of the three acquisitions was approximately $10.35 million. The company assumed approximately $3.4 million of debt in conjunction with one of the acquisitions. The assumed debt matures in February 2020 and carries a 6.24 percent interest rate.

The Boulder Group completed the sale of a single tenant net leased Walgreens property located at 2903 North Highway 17 in Mount Pleasant, S.C. for $7.38 million. Walgreens is the sole occupant of the 14,500-sq.-ft. building that was developed in 2011. Randy Blankstein and Jimmy Goodman of The Boulder Group represented the buyer; a 1031 exchange investor based in Chicago, in the transaction. The seller was a southeast based developer.

Lee & Associates closed on the $6.5 million sale of a 14,641-sq.-ft. retail property leased by CVS Pharmacy, located in Katy, Texas. Jim Casale, CCIM, a principal in the Lee San Diego office represented the buyers, a private family trust. The seller, Cinco Verde Retail Partners LLC, was represented by Jim DeFalco of Jim DeFalco Inc. The CVS store was constructed in 2011 and CVS has a lease on the building until 2036 with multiple options.

Hanley Investment Urban Retail Advisors, a division of Hanley Investment Group Real Estate Advisors announced that Carlos J. Lopez, president of HI Urban Retail Advisors represented the buyer in the purchase of the 6,150-sq.-ft. ground-floor retail condominium of a 263-unit luxury condominium building, known as Luma, within the heart of Downtown Los Angeles, Calif. The purchase price was $2.62 million. Built in 2007, the property is the second of three green residential buildings built in Downtown Los Angeles that is a part of a progressive development trend within the district. The buyer, Hope Tree LLC of Pacific Palisades, Calif., was represented by Carlos J. Lopez. The seller Amazing Grace Investments LLC of Los Angeles, Calif., was represented by Jay Park of Top Properties in Los Angeles, Calif.

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