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TPG Capital, Caruso Join Forces to Buy $750M in Underperforming Assets

TPG Capital and Caruso Capital Partners LLC, an affiliate of Caruso Affiliated, have formed a joint venture to invest up to $750 million in debt and equity in retail centers and mixed-use properties in select markets in Western United States. The venture, Caruso-TPG Partners, will target underperforming properties in mature markets.

Rick Caruso, president and CEO of Caruso Affiliated, will serve as the CEO of the new entity, while Stephen Rader, president of Caruso Capital, will serve as president. Caruso and TPG will have equal representation on Caruso-TPG Partners’ board of directors.

TPG has experience in investing in distressed real estate and turning around distressed assets dating back to the 1990s. In 2009, the firm worked in partnership with the FDIC and a group of investors to acquire $4.5 billion in construction development loans and REO assets from Corus Bank NA.

“At Caruso, we have a proven track record and an in-house team of professionals with expertise in disciplines ranging from design and construction to leasing, marketing and property management—all the disciplines required to successfully execute this program,” said Rick Caruso in a statement. “We found an ideal partner in TPG with its global investment experience and background in real estate, giving us a competitive advantage in securing top property opportunities in this depressed market.”

RioCan Buys $10M in Cedar Shopping Centers’ Stock

RioCan Real Estate Investment Trust exercised its warrant to purchase 1,428,570 common stock shares of Cedar Shopping Centers Inc. at a price of $7 per share. The transaction resulted in proceeds of $10 million for Cedar.

RioCan acquired the warrant as part of its investment in Cedar Shopping Centers in October 2009.

Glimcher Closes Offering, Pays Off Debt

Glimcher Realty Trust closed on its previously announced offering of 3,500,000 shares of its 8.125% Series G cumulative redeemable preferred shares. The shares were priced at $21.51 per share, including accrued distributions, and resulting in net proceeds of approximately $72.7 million. The yield on the offering, excluding accrued distributions, was 9.5 percent per annum. Goldman, Sachs & Co. and Banc of America Securities LLC served as the joint book-running managers for the offering.

Glimcher used the proceeds to reduce the outstanding amount on its credit facility to $154 million.

Stan Johnson Sells CVS Portfolio for $62.7M

Stan Johnson Co. negotiated the sale of a 20-property CVS portfolio to a private investor for $62.7 million. The portfolio encompasses CVS/pharmacies totaling 248,000 square feet and located throughout Alabama, California, Connecticut, Florida, Georgia, Illinois, Massachusetts, Michigan, New Hampshire, Pennsylvania, Texas and Virginia. Jeff Hughes and Brandon Duff, of Stan Johnson Co., represented both parties in the transaction.

Other Notable Deals

Marcus & Millichap Real Estate Investment Services negotiated the sale of Del Amo Plaza, a 58,126-square-foot neighborhood shopping center in Cerritos, Calif., for $9.8 million. The price represents $169 per square foot. Del Amo Plaza was constructed in 1963. Chris Maling and David Maling, first vice presidents of investments with Marcus & Millichap, represented the seller in the transaction.

NewMark Merrill Cos. has been appointed as property manager for five California shopping centers totaling 385,712 square feet. The centers include Del Amo Plaza in Cerritos; Lemon Creek Village in Walnut; Park Plaza on Maine Shopping Center in Baldwin Park; Santa Maria Commons in Santa Maria and Capistrano Collection in Capistrano.

Braum’s Ice Cream bought two pad sites in Frisco, Texas and Pryor, Okla. for its new stores. The one-acre Texas site is located at Teel Crossing Shopping Center in Frisco. The 1.75-acre Oklahoma site is located at Pryor Plaza Shopping Center. Daniel Harris, vice president of Henry S. Miller Brokerage LLC, represented the sellers in the transaction.

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