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Simon to Conduct Common Stock, Senior Notes Offerings to Pay for Mills, Klepierre Transactions

Simon Property Group Inc. will conduct an offering of 7,000,000 shares of common stock. In addition, the company expects to grant underwriters an overallotment option to purchase up to 1,050,000 additional shares. Simon Property Group L.P., Simon’s majority-owned operating partnership subsidiary, will also offer three new series of senior unsecured notes in the aggregate principal amount of $1.5 billion. The notes will have maturity dates of five and a half, 10 and 30 years.

Simon plans to use net proceeds from the offerings to fund the purchase of a 28.7 percent equity stake in Klepierre, a French REIT, and the purchase of interest in 26 properties in the Mills portfolio from Farallon Capital Management LLC, as well as for general corporate and partnership purposes.

J.P. Morgan, BofA Merrill Lynch and Goldman, Sachs & Co. are serving as joint book-running managers for the common stock offering. J.P. Morgan, RBS and UBS Investment Bank are serving as book-running managers for the senior notes offering.

Vornado Refinances Manhattan Mall Building in a $325M Deal

Vornado Realty Trust closed a $325 million refinancing for 100 West 33rd Street, in New York City, a 1.1-million-sq.-ft. property that contains the 243,000-sq.-ft. Manhattan Mall and 847,000 sq. ft. of office space.

The loan features an interest rate of LIBOR plus 2.5 percent and a three-year term. It comes with two one-year extension options.

Vornado received net proceeds of approximately $87 million from the transaction, excluding the repayment of the original loan and closing costs.

Inland Buys Ohio Shopping Centers for $109.4M

Inland Real Estate Corp. purchased Westgate Shopping Center, a 474,000-sq.-ft. grocery-anchored power center in Fairview Park, Ohio, for $73.4 million.

Formerly an enclosed mall, Westgate serves as a dominant power center in a densely populated area. Lowe’s Home Improvement, Kohl’s and Earth Fare anchor the property. In-line tenants at the center include Marshalls, Petco, Famous Footwear, Five Below and Ulta Beauty, among others. Westgate Shopping Center currently has a 94 percent occupancy rate.

Simultaneous with the purchase, Inland Real Estate closed a $40.4 million loan on the property. The interest only loan features a 4.9 percent fixed interest rate and a 10-year term.

In addition, Inland bought Stone Creek Towne Center in Cincinnati from a joint venture of Brandicorp. and Trinity Development Co. for $36 million. The sale included 143,000 sq. ft. of space out of 450,000 sq. ft. of new retail development. Best Buy, Bed Bath & Beyond and Old Navy anchor the center. Ben Wineman, of Mid-America Real Estate Corp., and Amy Hotler, of Anchor Associates, represented the seller in the transaction.

HFF Arranges $33.5M Loan for Mixed-Use Center in Pittsburgh

HFF arranged a $33.5 million permanent mortgage on behalf of an affiliate of Millcraft Industries for Piatt Place, a 225,000-sq.-ft. mixed-use center in Pittsburgh. Guggenheim Commercial Real Estate Finance provided the loan, which featured a fixed interest rate. Mark Popovich negotiated this transaction.

In a separate transaction, HFF arranged a $23.4 million CMBS loan on behalf of Cole Real Estate Investments for Century Town Center in Vero Beach, Fla., The Plaza at Power Marketplace II in Queen Creek, Ariz. and Dimond Crossing in Anchorage, Alaska. Citigroup Global Markets Inc. provided the financing for this transaction. The interest-only loan features a 5.4 percent fixed interest rate and a 10-year term.

Century Town Center was completed in 2008 and contains 107,049 sq. ft. of space. It is 93 percent leased. The Plaza at Power Marketplace II was completed in 2007 and contains 70,978 sq. ft. It is 92 percent leased.

Dimond Crossing was completed in 1981 and contains 85,356 sq. ft. of space. It is 100 percent leased. Anchor tenants at the centers include Marshalls, HomeGoods, Petco, LA Fitness, PetSmart and Bed Bath & Beyond.

Kevin MacKenzie and Paul Stasaitis, of HFF, negotiated this transaction.

Hanley Investment Group Negotiates Drug Store Sales in Western U.S. for $13M

Hanley Investment Group Real Estate Advisors negotiated the sale of two single-tenant Walgreens for more than $13 million in total.

Downey 1 Partners LLC sold a 12,255-sq.-ft. freestanding, drive-thru Walgreens in Downey, Calif. to a private investor for $8.068 million. Walgreens has a 25-year triple net lease for the property. Jeremy S. McChesney, of Hanley Investment, represented the buyer in the transaction. Art Flores, of CBRE, represented the seller.

Tucson Drugstore LLC sold a 14,490-sq.-ft. single-tenant triple-net leased Walgreens in Tucson to 31781 Mission Trail Road LLC for $5.19 million. The sale closed at a cap rate of 6.7 percent. William B. Asher and Jeremy S. McChesney represented the buyer in the transaction.

NorthMarq Arranges Loans in California, Illinois

NorthMarq arranged $6 million first mortgage refinancing on behalf of Port Clinton Square LLC for Port Clinton Square, a 130,000-sq.-ft. mixed-use property in Highland Park. Ill. Mesirow Financial serves as the major tenant for the site. The loan features a 10-year term, a 10-year amortization schedule and 25 percent loan to value ratio. Erik Kunz, of NorthMarq, negotiated this transaction.

In a separate transaction, NorthMarq arranged an $8.5 million first mortgage refinancing on behalf of Palomar Partners PL for Castle Park, an 87,103-sq.-ft. grocery-anchored shopping center in Chula Vista, Calif. Save-A-Lot, Auto Zone, DD’s, Factory 2-U and Union Bank serve as tenants at the center. Wells Fargo Bank provided funding for the loan, which features a five-year term and a 25-year amortization schedule. Doug Austin of NorthMarq, negotiated this transaction.

Other Notable Deals

BLDG Acquisition Corp. purchased a 3,496-sq.-ft. retail condominium at 127 Seventh Ave. in New York City from Yves Retail LLC for $6.6 million. The property contains 2,064 sq. ft. of space on the ground floor and 1,432 sq. ft. of space on the lower level. Jeff Fishman, Brian Segall and Jonathan Butwin, of RKF, represented both parties in the transaction.

Deerwood Real Estate Capital closed a $3.5 million loan for a 13,000-sq.-ft. single-tenant Rite Aid in Monroeville, Pa. The non-recourse loan features a fixed interest rate, a 10-year term and a 30-year amortization schedule. Abe Katz, Joe Hercenberg and Mark Silbersher negotiated this transaction. In addition, Deerwood closed on a $6.6 million loan for two single-tenant grocery stores in Alaska and Indiana. The properties include a 52,000-sq.-ft. store in Palmer, Alaska and a 33,000-sq.-ft. store in Beech Grove, Ind. The loan features a 10-year term and a 30-year amortization schedule. David Rosenberg, Joe Hercenberg and Mark Silbersher negotiated this transaction.

The Boulder Group negotiated the sale of a 7,383-sq.-ft. single tenant triple net leased National Tire and Battery Auto Parts property in Woodstock, Ga. to a Southeast-based developer for $2.5 million. The building was completed in 2012. Randy Blankstein and Jimmy Goodman, of The Boulder Group, represented the buyer in the transaction.

Ramco-Gershenson Properties Trust sold Eastridge Commons, a 169,676-sq.-ft. shopping center in Flint, Mich. to Nadmar Realty Group for an undisclosed amount. TJ Maxx, Dollar Tree, Party City, Simply Fashions, Rent-A-Center and GameStop anchor the center. Target serves as a shadow anchor. Ben Wineman and Daniel Stern, of Mid-America Real Estate Corp., represented the seller in the transaction. The buyer represented itself.

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