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Kimco Partners With Canada Pension Plan to Acquire Prime U.S. Assets

Kimco Realty Corp. and the Canada Pension Plan Investment Board (CPPIB) formed a joint venture to acquire class-A neighborhood shopping centers throughout the United States. The initial investment of $370 million includes five former PL Retail assets totaling more than 2 million square feet that Kimco purchased in the fourth quarter of 2009. The centers are located in California, Florida and Virginia and are anchored by national retailers including Costco and Walmart.

CPPIB will acquire a 45 percent interest in the venture and Kimco will retain a 55 percent interest and will act as the operating partner, which will entail collecting asset management and other customary fees.

“We are very excited about forming a long term partnership with one of the largest and most well regarded pension funds in Canada,” said Kimco president and CEO David Henry in a statement. “CPPIB has an outstanding track record and wonderful staff of real estate professionals.”

Going forward, the venture plans to acquire additional properties and property portfolios.

Macquarie DDR Trust to Undergo Management Change

Macquarie DDR Trust has completed an A$9.5 million private placement with EPN GP LLC and will conduct a pro rate entitlement offer to raise approximately A$200 million for debt reduction. Upon the closing of the entitlement offering, ENP will acquire the Macquarie Group’s 50 percent interest in Macquarie DDR Management LLC, the operating manager for the Macquarie DDR Trust. The transaction should have no impact on the operation of the trust’s assets.

Urstadt Biddle Invests in New York Assets

Urstadt Biddle Properties Inc. , acting through a wholly owned subsidiary, acquired a 66.67 percent equity interest in Putnam Plaza in Carmel, N.Y. for $6.2 million, including closing costs. Putnam Plaza is a 193,000-square-foot grocery-anchored shopping center anchored by Hannaford Brothers Supermarket. At closing, the joint venture borrowed $21 million secured by the first mortgage on the property. The mortgage featured a five-year term and a fixed interest rate of 6.2 percent with a five-year extension option.

Also acting through a wholly owned subsidiary, Urstadt Biddle acquired three contiguous mixed-use properties totaling 32,000 square feet in Katonah, N.Y. for $8.6 million, including closing costs. The properties include office and retail uses and are located on the main shopping thoroughfare in downtown Katonah. There are no mortgages on the properties.

Marcus & Millichap Negotiates Three Net-Leased Deals

Marcus & Millichap Real Estate Investment Services negotiated the sale of the Time Warner Cable building, a 7,884-square-foot single-tenant net-leased property in Terry Haute, Ind., for $753,462. The tenant has a 15-year lease with annual rent increases based on the Consumer Price Index dating back to 2002 Alvin Mansour, an investment specialist with Marcus & Millichap, represented the seller in the transaction. Josh Caruana assisted in the closing.

Marcus & Millichap also negotiated the sale of Christian Brothers Automotive, a 4,790-square-foot single-tenant net-leased building in Carrollton, Texas for an undisclosed amount. The tenant has signed a 15-year absolute net lease with 1.5 percent annual rent increases throughout the term. Alvin Mansour represented the seller in the transaction. Mike Francis represented the buyer.

Lastly, Marcus & Millichap negotiated the sale of Aaron Rents, a 7, 515-square-foot single-tenant net-leased building in Sacramento, Calif. The tenant has a 10-year triple net lease with rent increases every five years. Alvin Mansour represented the seller in the transaction.

Regency Sells Houston Asset

Regency Centers sold Memorial Collection Shopping Center, a 103,000-square-foot neighborhood shopping center in Houston to Westwood Financial Corp. for an undisclosed amount.

The center was 96 percent leased at the time of sale and features Randalls as an anchor. George Cushing, executive vice president, and Wendy Vandeventer, vice president with Grubb & Ellis Co. , represented Regency Centers in the transaction. Westwood Financial represented itself.

Other Notable Deals

Ashley Furniture Industries Inc. acquired a 33,952-square-foot former Circuit City building in Hawthorne, Calif. for an undisclosed amount. Hodgdon Group Realty Inc. and Scott Kaplan, senior vice president with CB Richard Ellis, represented Ashley Furniture. Richard Rizika, executive vice president with CB Richard Ellis, represented the seller, WhiteFire Capital LLC, in the transaction.

Marabella Commercial Finance Inc. provided a $2.9 million loan for a Walgreens net-leased property in Northern California. The loan featured a five-year fixed interest rate of 5.80 percent, a 10-year term and a 25-year amortization schedule.

Investcorp Real Estate acquired Deerbrook Marketplace, a 348,542-square-foot shopping center in suburban Houston, Texas for an undisclosed amount. The center is 98.5 percent leased to tenants including the Sports Authority, Best Buy, Marshalls and Bed, Bath and Beyond and has limited lease rollover over the next two years. Capital Trust Inc. provided mortgage financing for the transaction.

h (To have your deals included in our weekly roundup, please email releases to David Bodamer or Elaine Misonzhnik.)

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