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Inland Western Forms Joint Venture with RioCan, with Initial Investment of $138M

Inland Western Retail Real Estate Trust Inc. signed definitive agreements to form a joint venture with RioCan Real Estate Investment Trust, Canada’s largest REIT. RioCan’s initial $138 million investment in the venture includes eight shopping centers in Texas totaling 1.2 million square feet.

Inland Western and RioCan plan to grow the venture over time through acquisition of additional necessity-based shopping centers.

The initial properties include Suntree Square in Southlake, Coppell Town Center in Coppell, Bear Creek Shopping Center and New Forest Crossing in Houston, Great Southwest Crossing in Grand Prairie, Southpark Meadows-Phase I in Austin, Riverpark Shopping Center in Sugarland and Cypress Mill Plaza in Cypress. The centers are anchored by tenants such as Wal-Mart, PetSmart, Tom Thumb, ROSS Dress for Less, HEB and Hobby Lobby.

Under the terms of the agreement, RioCan will acquire an 80 percent interest in the venture and Inland Western will retain a 20 percent interest, in addition to earning property management and asset management fees for the portfolio.

“This transaction represents the continued execution of our strategy to align ourselves with strong institutional partners,” said Shane Garrison, chief investment officer of Inland Western, in a statement. “RioCan is the dominant retail property owner in Canada, and we are pleased to partner with them as they selectively enter the U.S. real estate market. We look forward to expanding this relationship and the alignment of these highly experienced real estate platforms.”

Ramco-Gershenson Closes Stock Offering, Raises $75.6M to Pay Off Debt

Ramco-Gershenson Properties Trust closed a previously announced public offering of 6,900,000 newly issued common shares of beneficial interest, including 900,000 shares pursuant to the underwriters’ over-allotment option, at $11.50 per share.

The REIT’s net proceeds from the offering totaled approximately $75.6 million, after deducting underwriting discounts, commissions and other transaction expenses. Ramco-Gershenson plans to use the money to prepay the $33 million principal payment of its secured term loan facility, to pay off two mortgages in aggregate of $15.9 million and to reduce outstanding borrowings under its secured revolving credit facility.

BofA Merrill Lynch and J.P. Morgan Securities Inc. served as the joint book-running managers for this offering. Deutsche Bank Securities Inc. and KeyBanc Capital Markets Inc. served as lead managers and RBC Capital Markets Corp. and Stifel, Nicolaus & Co. Inc. as co-managers.

Voit to Serve as Manager for $150M Distressed CRE Portfolio in Sacramento

Voit Real Estate Services has been appointed as asset manager for a 12-asset distressed commercial real estate portfolio in the greater Sacramento, Calif. area. The portfolio totals 500,000 square feet and includes a 339-unit class-A apartment complex, a 150,000-square-foot community shopping center, multiple strip centers and several office and industrial properties. The properties have a notional value of $150 million.

Augusta, Ga. Shopping Center Sells for $11.3M

Carter’s Retail Investment Sales Group negotiated the sale of Colony Plaza, a 216,712-square-foot shopping center in Augusta, Ga., from Colony Plaza Development LLC to a private equity group for $11.3 million.

The center features Food Lion, Roses and Sitel as anchors and is 93 percent leased. The previous owners recently completed a $3 million renovation, which included a new roof, façade, signage and HVAC. Mark Joines and Drew Fleming, of Carter’s, represented the seller in the transaction.

NorthMarq Arranges $7.5M Loan for N.C. Shopping Center

NorthMarq Capital arranged a $7.5 million first mortgage for Carrboro Plaza, a 124,986-square-foot anchored shopping center in Carrboro, N.C.

The loan featured a three-year term, with resets at years three and six and a 25-year amortization schedule. Bruce Foster, senior vice president and managing director of NorthMarq’s Atlanta office, arranged the financing through NorthMarq’s relationship with Symetra Life Insurance Co.

Other Notable Deals

Madison Marquette, in conjunction with MCB Real Estate, acquired a 10-acre land parcel with a 90,000-square-foot former Home Expo Design Center in Columbia, Md. The property is located at Columbia Center II and is part of a retail corridor that includes Target, Dick’s Sporting Goods and Costco, among others. Madison Marquette has executed a new lease for 63,000 square feet for the space with a national retail concept. The store is scheduled to open in time for the holiday shopping season.

Metro Commercial Real Estate Inc. negotiated the sale of two former Office Depot stores in the Northeast to Sixth Avenue Electronics. The transaction included the sale of a store in Deptford, N.J. for $3.3 million and the sale of a store in Langhorne, Pa. for $2.7 million. Rob Cooper, of Metro Commercial, represented the seller, Office Depot. R.J. Brunelli represented the buyer.

Marcus & Millichap negotiated the sale of an AT&T Wireless net-leased building in Montgomery, Ala. for $1.46 million. The transaction featured a cap rate of 8.35 percent. AT&T has signed a 10-year lease for the property, with built-in 10 percent rent increases every five years. Alvin Mansour, of Marcus & Millichap, negotiated this transaction.

Cohen and Co. Inc. Real Estate negotiated the sale of a package of net leased Verizon stores in Tupelo, Miss. and Moncks Corner, S.C. Phyllis Bosworth, managing director of Cohen and Co., represented the seller in the transaction, a Southeast-based merchant builder. Keith Lefkof, senior director, represented the buyer, a New York investor.

Henry S. Miller Brokerage negotiated the sale of the 7,320-square-foot Boca Bargoons retail building in Plano, Texas. The building sits on 2.02 acres of land and offers more than 120 parking spaces. Rowan Shaiti, of Henry S. Miller, represented the seller in the transaction. Beverlee Heintges, of Residential Locators, represented the buyer.

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