JUNE 4, 2014 | ISSUE 119
Southeast Real Estate Business
National tenants comprise 96 percent of the tenants at Fallbrook Center. (Photo courtesy of LoopNet) 
 West Hills, Calif. - Retail Opportunity Investments Corp. (ROIC) has entered into an agreement to purchase Fallbrook Center in the West San Fernando Valley of the Los Angeles area for $210 million. The seller is General Growth properties, which has owned the center since 1983. The transaction is expected to close this quarter.


Fallbrook Center has approximately 1.1 million square feet of gross leasable area. Tenants of the center include Ralph's, Trader Joe's and Sprouts, as well as Walmart, Home Depot, Target and Kohl's. The center is 98 percent leased, and 87 percent of the tenants are anchors with an average remaining lease term of 12 years.

Click here to read more about ROIC's purchase of Fallbrook Center.
Meridian Capital Group's loan for its Central Florida retail porfolio has a fixed interest rate of 4.88 percent and features five years of interest-only payments.


Boca Raton, Fla. - Meridian Capital Group LLC has arranged $31 million to refinance seven unanchored shopping centers in Orlando, Tampa, Kissimmee, Sanford and Sarasota. The properties total 200,000 square feet and house 80 tenants. The retail centers include Westchase Town Center in Tampa; The Gateway and Osceola Gateway in Kissimmee; The Shoppes of East Colonial and Hunter Creek Shoppes in Orlando; Sanford Town Center in Sanford; and Sarasota Palms Plaza in Sarasota. Michael Brown and Adam LeBlanc of Meridian's Boca Raton office arranged the 10-year, non-recourse loan through a CMBS lender. The loan has a fixed interest rate of 4.88 percent and features five years of interest-only payments.

New York - SL Green Realty Corp. has entered into an agreement to buy 719 Seventh Avenue for $41.1 million. The property is located on the southeast corner of 48th Street and Seventh Avenue in New York. This location can be seen looking north from the center of Times Square, as well as south from 52nd Street down Seventh Avenue. The site can accommodate a building up to 28,114 square feet. SL Green will demolish the building to take advantage of the development rights. According to PropertyShark, the current owners of 719 Seventh Avenue are Kenneth Rothstein of Denver and Jeffrey Rothstein of Scarsdale, N.Y.

Lakeside Crossing in Lynchburg, Va., is 98.5 percent leased to 14 tenants, including Mattress Warehouse, Panera Bread, Massage Envy and Zoe's Kitchen.
Lynchburg, Va. - Inland Real Estate Income Trust Inc. has purchased the Lakeside Crossing shopping center in Lynchburg for $19.8 million, according to an Inland spokesperson. Lakeside Crossing Lynchburg LLC sold the 66,906-square-foot center that features a 20,900-square-foot Fresh Market grocery store. The center is 98.5 percent leased to 14 tenants, including Mattress Warehouse, Panera Bread, Massage Envy and Zoe's Kitchen. Lou Quilici, senior vice president of IREIT Business Manager & Advisor Inc., assisted Mark Cosenza, vice president of Inland Real Estate Acquisitions Inc., in the purchase of the property.

Burlington, Vt. - 
Burlington Town Center will add L.L.Bean as an anchor in October. This location will be the first L.L. Bean store in Vermont and the 20th outside of its home state of Maine. The 18,290-square-foot L.L.Bean store will occupy the first and second levels of a former office building at 101 Cherry Street, adjacent to Burlington Town Center. The building will be incorporated into the mall interior, offering a new L.L.Bean entrance and storefront on Cherry Street, as well as entrances from both levels of the mall interior. Burlington Town Center came under new ownership in December 2013 in a joint venture between Mountain Development Corporation, a New Jersey-based real estate company and Devonwood Investors LLC, a New York real estate investment firm.
The redeveloped Fairfax Circle Plaza will include 88,000 square feet of grocery-anchored retail.
Fairfax, Va. - The city council here has approved the rezoning application for Combined Properties' Fairfax Circle Plaza. Combined Properties intends to redevelop the current strip retail center and replace it with a mixed-use project containing up to 400 apartments and 88,000 square feet of retail, including a grocery store anchor. Fairfax Circle Plaza is located at the intersection of Route 50 and Route 29 in Fairfax. The project team includes KTGY, building architect; Land Design Inc., landscape architect; and Mark Looney of Cooley LLP, land use counsel.
Muncie, Ind. - Viking Partners LLC has sold the 59,292-square-foot McGalliard Mall Shops in Muncie to a private investor for $8.78 million. The property is located on 5.16 acres and is anchored by Panera Bread, Party City, Buffalo Wild Wings, Qdoba and more. In less than two years, Viking was able to increase the occupancy rate to 95 percent. When Viking acquired the development through Auction.com, the project was 51 percent leased. Colliers brokered the sale of the center, while Katz, Teller Brant & Hild provided legal counsel to Viking.
Asheville, N.C. - Construction is underway on Asheville Outlets, the 325,000-square-foot outlet center that will open spring 2015 five miles southwest of downtown Asheville. New England Development is developing the outlet center in partnership with Tremont Realty Capital. The center will feature approximately 75 manufacturer and retail outlets, a food court, open-air covered pedestrian-only walkways and more. According Sharon Morgan, general manager of Asheville Outlets, Asheville receives more than 9 million visitors each year. Winter Construction, the project's construction management firm, and New England Development are working with project subcontractors to ensure as much of the construction debris as possible is recycled or reused. Subcontractors have already recycled 65 tons of steel, six tons of copper and 60 tons of scrap metal.
Hobby Lobby and Jo-Ann Fabrics anchor Lake Park Plaza in Michigan City, Ind., which was purchased by RCG Ventures.


Michigan City, Ind. - Transwestern has brokered the sale of the 114,867-square-foot Lake Park Plaza in Michigan City, located in northwest Indiana. RCG Ventures purchased the center from Inland Real Estate Corporation for an undisclosed amount. Transwestern's Janice Sellis and Paul Barile represented Inland Real Estate Corporation in the transaction. RCG Ventures represented itself. Hobby Lobby and Jo-Ann Fabrics anchor the center; other tenants include Sally Beauty Supply, Batteries Plus and H&R Block.

The refinancing loan transaction for Mid-Town Mall was structured with a 20-year term and 20-year amortization schedule.
Methuen, Mass. - NorthMarq Capital has secured a $1.8 million loan to refinance the Mid-Town Mall, a 14,632-square-foot retail property located in Methuen, Mass., a city in Essex County on the New Hampshire border. Ed Riekstins, senior vice president of NorthMarq's Boston office, and Matt Marshall, vice president, arranged the loan. The transaction was structured with a 20-year term and 20-year amortization schedule. The multi-tenant retail strip mall was 100 percent leased at the time of the transaction, has been managed by the borrower since 1975 and was rebuilt by the borrower in 1983.

Atlanta - SRS Real Estate Partners (SRS) has executed three single-tenant-net-lease transactions between March and May 2014, totaling more than $11 million in sales revenue and more than 218,000 square feet of retail real estate. The properties are located in Illinois, Missouri and Alabama. Kyle Stonis, Pierce Mayson and John Topping of the SRS Southeast Investment Sales team, and Steven Aberman of WBS Properties, represented the seller in the sale of a Winn-Dixie in Atmore, Ala. The property is approximately 38,000 square feet and is located two miles north of the Florida state line.


Click here to read more about SRS's net-lease transactions.

Market Street Place will include up to 270 feet of street frontage, as well as 15- to 18-feet-high ceilings.
San Francisco - Cypress Equities will break ground in September on a 250,000-square-foot multi-level retail center called Market Street Place. The building will include six levels of retail and 167 spaces of underground parking. The development, located on Market Street between 5th and 6th streets, was designed by Gensler and will feature an exterior façade that combines layers of clear and translucent glass. It also has up to 270 feet of street frontage, as well as 15- to 18-feet-high ceilings. The development will open in fall of 2016. SRS Real Estate Partners will be the lead on retail leasing.
Milwaukee, Wis. - 9Round, a specialized fitness franchise, has leased a 1,900-square-foot space in The Shops of Grand Avenue in downtown Milwaukee. The space will open in June. Founded by CEO and former kickboxing champion Shannon Hudson, 9Round offers trainer-led, 30-minute kickboxing workouts with nine stations, as well as nutritional guidance for fat loss and lean muscle building. The company, based in Greenville, S.C., has franchises in 34 states; this is its second Milwaukee location. The Shops of Grand Avenue spans three city blocks at 275 W. Wisconsin Avenue and features three enclosed levels of shopping and dining, including Milwaukee's largest food court. Chicago-based Mid-America Asset Management Inc. manages the center.
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