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White City Centers Trade for $56M

Charter Realty & Development Corp. acquired the White City Shopping Center and the White City East Shopping Center in Shrewsbury, Mass. for a total purchase price of $56 million. White City Shopping Center is a supermarket-anchored retail center located just outside the City of Worcester, Mass. The adjacent White City East is located across the street.

The properties were acquired by a joint venture between Charter and Acadia Strategic Opportunity Fund III LLC, a discretionary investment fund managed by Acadia Realty Trust. Financing for the transaction was provided by Sovereign Bank, a subsidiary of Bank Santander. The CBRE National Retail Investment Group team of Chris Angelone, Jim Koury, Bill Moylan and Nat Heald exclusively represented the seller and secured the buyers in this transaction.

According to Jim Koury, executive vice president at CBRE, “The buyer did an excellent job identifying and acquiring a prime retail property with a 50-year track record of high occupancy and tenant longevity. They performed admirably, proceeding from contract to closing in a constrained period of time.”

White City was constructed in the early 1960s, and has been owned and managed by its original developer since that time. The two centers are approximately 95 percent leased with a mix of national and local tenants such as Shaw’s Supermarkets, World Gym, Dress Barn, iParty, Austin’s Liquors and Michael’s. The centers total approximately 280,000 square feet.

Charter will be responsible for all development, property management, and leasing on behalf of the joint venture.

Eastgate Shopping Center Fetches $31.5M

Marcus & Millichap Real Estate Investment Services brokered the sale of the 445,907-square-foot Eastgate Shopping Center in Memphis, Tenn. The sales price of $31.5 million represents $71 per square foot.

Brad Nathanson, a vice president investments and a senior director of the firm’s National Retail Group (NRG) in Philadelphia, and Paul Kerber, a vice president investments and a senior director of the firm’s National Office and Industrial Properties Group (NOIPG) in Detroit, represented the locally based seller, Union Realty Co. GP and Belz Investco GP. Marcus & Millichap also represented the buyer, Arrow Operating Acquisitions LLC. Anne Williams of the firm’s Tennessee office also provided representation.

The center is occupied by Fresh Market, Michaels, TJ Maxx, Stein Market, Burlington Coat Factory, Walgreens and others.

Ramco Gershenson Buys Milwaukee Center

Ramco-Gershenson Properties Trust acquired the 135,484-square-foot Shoppes at Fox River in Waukesha, Wisc., for $23.8 million in an all cash transaction.

The Shoppes at Fox River was built in 2009 and is anchored by a 61,045-square-foot Pick ‘n Save and shadow-anchored by a 132,382-square-foot Target. The 93.4 percent leased shopping center also features numerous additional creditworthy national and regional tenants including Petco, Dollar Tree, Famous Footwear, Buffalo Wild Wings, Subway and GNC.

As part of the transaction, Ramco-Gershenson entered into an agreement to lend the seller $3.0 million secured by a 17.9-acre parcel of land adjacent to the shopping center. As part of the loan the company has secured certain rights relative to the adjacent land, which have the potential to add value to the existing shopping center. The interest only loan has a two-year term and an interest rate of 7.5 percent.

In connection with the acquisition, Ramco-Gershenson secured a short-term, $30 million bridge loan to fund the acquisition. The company anticipates the repayment of the bridge loan and additional pay-down of debt with the proceeds generated from the sale of three shopping centers and new mortgage financing on two assets. These transactions are expected to close prior to the end of the first quarter of 2011.

Stiles Acquires Coral Landings III

Stiles acquired the 154,934-square-foot Coral Landings III shopping center in Coral Springs, Fla., for approximately $14 million.

Stiles obtained the property via a note purchase and then foreclosure, and intends to immediately secure construction financing from Wells Fargo. Stiles is actively leasing the retail center, which is anchored by Best Buy, HomeGoods and Jo-Ann Fabrics. The company is resuming construction of the 38,944-square-foot second phase, which includes a new 18,300-square-foot ALDI grocery store and is set on fast-track construction for delivery in the fourth quarter 2011.

The first phase of Coral Landings III, which was completed in 2008, encompasses 115,990 square feet of retail space. The second phase, which is partially constructed, is 38,944 square feet with three new available outparcels.

HFF Closes Sale of Atlanta Center

The Atlanta office of Holliday Fenoglio Fowler L.P. announced today that it has closed the sale of the 81,428-square-foot Everson Pointe grocery-anchored retail center in Snellville, Georgia.

HFF directors Richard Reid and Jim Hamilton led the investment sales team on behalf of the seller, Edens & Avant. The property was purchased free and clear of debt for an undisclosed price.

Everson Pointe is situated on a 9.8-acre site in Snellville, an east Atlanta suburb. The property is anchored by Kroger and is 86 percent leased.

Other Notable Deals

Faris Lee Investments completed the $7.2 million sale of a single-tenant property occupied by Henry’s Marketplace, the anchor retailer within Trabuco Hills Shopping Center in Mission Viejo, Calif. The property totals 24,240 square feet. Dennis Vaccaro, senior managing director and Richard Walter, president, Faris Lee Investments represented the Orange County, Calif.-based seller, Trabuco Hills O5 LLC. Dennis Vaccaro and Chris Tramontano of Faris Lee Investments represented the buyer, Burbank, Calif.-based DAP LLC. The transaction closed at a 6.6 percent cap rate. Faris Lee Capital also acted as an advisor to both the buyer and seller during a complicated CMBS loan assumption process. The in-place loan for Henry’s Marketplace was for $4.2 million with a fixed interest rate at 5.91 percent. The lender required that the buyer either assume the loan or pay a heavy defeasance penalty.

Agree Realty Corp. acquired a property ground leased on a long-term basis to JPMorgan Chase Bank in Spring Grove, Ill. The cost of the acquisition was approximately $2.9 million. Chase Bank has approximately 27 years remaining on the base term of the lease.

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