JUNE 18, 2014 | ISSUE 121
Southeast Real Estate Business
Robert Taubman, chairman, president and chief executive officer of Taubman Centers


Bloomfield Hills, Mich. - Taubman Centers Inc. and Starwood Capital Group have reached an agreement for Starwood, through a controlled affiliate, to purchase a portfolio of seven Taubman malls for $1.4 billion. 


The malls in the transaction include MacArthur Center in Norfolk, Va.; Stony Point Fashion Park in Richmond, Va.; Northlake Mall in Charlotte, N.C.; The Mall at Wellington Green in Wellington, Fla.; The Shops at Willow Bend in Plano, Texas; The Mall at Partridge Creek in Clinton Township, Mich.; and Fairlane Town Center in Dearborn, Mich. 


The purchase price of $1.4 billion before transaction costs includes $785 million of cash and $620 million of property-level debt that will be repaid or assumed at closing by the buyer. The sale is part of Taubman's ongoing strategy to recycle capital, maximize its net operating income growth rate and create net asset value for investors over time.  


Click here to read about the sale of this portfolio.


Beachwood, Ohio and New York - DDR Corp. and an affiliate of Blackstone Real Estate Partners VII have formed a third joint venture to acquire 76 shopping centers currently owned by American Realty Capital Properties Inc. The joint venture has executed a purchase and sale agreement to acquire the portfolio for nearly $1.98 billion. The transaction includes assumed debt of $461 million and approximately $800 million of new financings.


Blackstone owns 95 percent of the common equity of the joint venture and an affiliate of DDR owns the remaining 5 percent. DDR will also invest up to a maximum of $300 million in preferred equity in the joint venture, and has agreed to provide leasing and management services.

Click here to read more about DDR and Blackstone's acquisition of 76 shopping centers.
Huntington Bank provided the financing for the acquisition of Pavilion Shopping Center in Beachwood, Ohio.
Beachwood, Ohio - Devonshire REIT has acquired Pavilion Shopping Center in the Cleveland suburb of Beachwood for $35 million. The grocery chain Giant Eagle anchors the 249,873-square-foot Pavilion Shopping Center with sub-anchors of Big Lots, Marshalls, Michaels and Stein Mart. Other national tenants include Petco, Lane Bryant, Quiznos, Bruegger's Bagels, Sally Beauty Supply, GNC, Verizon Wireless, Ruby Tuesday and Huntington Bank. Devonshire did not disclose the seller. The property is 97 percent occupied with the one remaining vacant space under negotiation. Huntington Bank provided the financing for the transaction.
Herndon, Va. - Rappaport has closed on a $65 million first mortgage loan to refinance Worldgate Centre, its 230,000-square-foot retail center located in Herndon. Rappaport purchased the asset in 2000. Worldgate Sport & Health anchors the property, and other tenants include a nine-screen AMC Theatre, Starbucks Coffee, TGI Friday's, Subway, Qdoba Mexican Grill, Cold Stone Creamery and FedEx Kinko's. The Ackman-Ziff Real Estate Group arranged the 10-year non-recourse loan through a CMBS lender on behalf of Rappaport.
Bethesda, Md. - Washington Prime has entered into a definitive agreement to acquire its partner's interest in a portfolio of seven open-air shopping centers. Previously, Washington Prime held 32 to 42 percent ownership in the properties, located in Florida, Indiana, Virginia and Connecticut, but with this transaction, will own 100 percent of four properties and approximately 88 percent of the remaining three.
Click here to read more about the purchase of interest in a retail portfolio.
Sandstone Properties Inc. sold the Canyon Springs Shopping Center to Springtree Global LLC for $16.8 million.


Irvine, Calif.Cassidy Turley has arranged the sale of two shopping centers in Moreno Valley for a combined total of $34.8 million. Dixie Walker, managing director of Cassidy Turley, as well as vice president Charley Simpson and associate Tom Blake represented ownership in each investment sale.


Lakeside Terrace Shopping Center, a 55,157-square-foot center, was purchased through a 1031 exchange by Spathco from IRA Capital LLC. The price was $18 million, or $315 per square foot, with a cap-rate of 6.1 percent. Built in 2005, Lakeside Terrace is 94 percent leased with anchor tenants that include CVS, Dollar Tree, McDonald's and Chase Bank.


Sandstone Properties Inc. sold the Canyon Springs Shopping Center to Springtree Global LLC for $16.8 million, or $223 per square foot. Built in 2004, Canyon Springs is 100 percent leased to Smart & Final Extra!, Pier 1 Imports, Michaels, Famous Footwear and Uniform Zone. 
Read more about the sale of Lakeside Terrace and Canyon Springs shopping centers.
Dan Cooper, president and broker of the Cooper Commercial Investment Group, represented the seller, Toledo Plaza X LLC, in the sale of the Shoppes at Glendale.

Toledo, Ohio - Cooper Commercial Investment Group has arranged the sale of the Shoppes at Glendale, a 10,500-square-foot retail center built in 2005, for $1.8 million with a cap rate of 7.8 percent. The Shoppes at Glendale is 100 percent occupied with all triple net leases in place. The center is shadow-anchored by a Walmart Supercenter. Dan Cooper, president and broker of the Cooper Commercial Investment Group represented the seller, Toledo Plaza X LLC, a private investment group out of Ohio, while the buyer, Parkwood Plaza Inc., is a private investor out of Connecticut.
Chicago - Tucker Development has added two new hires to continue the development of large-scaled mixed-use projects in infill locations. Patrick Lindemann has been named CFO and Kevin Cleary has been named construction manager. Lindemann previously served as CFO for companies such as Vestian Group-SF Holdings, Harbortown Industries and Ampco Metal Inc. Cleary was previously owner and operations manager of Cleary Builders, as well as senior manager of construction for owner/developer Regency Centers.
Read more about Tucker Development's infill projects.
Auburn Hills, Mich. - Mountain Warehouse, an outdoor gear retailer, has opened its first location in the United States at Great Lakes Crossing Outlets in Auburn Hills, located 30 miles northwest of Detroit. Other recent openings at Great Lakes Crossing Outlets include Quiksilver, Zumiez, Express/Express Men's Factory Outlet, Jared Vault and Starbucks. Helzberg Diamond Outlets will open its first outlet location in Michigan in July at Great Lakes Crossing. Beginning construction soon are Bistro Thai and Tokyo San in the food court, and Justice will reopen as Justice and Brothers this summer.
Corner Bakery Café will open later this year at The Mayfair Collection in Wauwatosa, Wis.
Wauwatosa, Wis. - Corner Bakery Café will open its first Wisconsin location this year at The Mayfair Collection. Franchisee Neo Fourno Inc. will operate the 4,000-square-foot location near the entrance of the development. The Mayfair Collection opened in April with tenants that include Nordstrom Rack, Dick's Sporting Goods, Ulta Beauty and more. Corner Bakery Café will begin construction within the next few weeks and is projecting to open later this year. Neo Fourno Inc. plans to open 10 new cafes in Madison and Milwaukee over the next five years.
Palm Beach Gardens, Fla. - A 5,275-square-foot Verizon Wireless retail store has opened at Menin Development's PGA Plaza shopping center in Palm Beach Gardens. The 120,000-square-foot PGA Plaza is anchored by a Marshalls department store, as well as two additional anchors currently under construction, a 12,500-square-foot Trader Joe's and a 10,000-square-foot Ulta Beauty store. PGA Plaza is currently undergoing $15 million dollars in renovations. Kate Gilbert of Menin Realty Services Inc. represented the landlord in the lease transaction.
The Studio Movie Grill opened at Town Center Colleyville in Colleyville, Texas, in late May. Venture Commercial arranged the leasing.
Colleyville, Texas - Venture Commercial has brokered the lease sale and assignment of a 51,935-square-foot building that includes a Studio Movie Grill at the Town Center Colleyville, located 10 miles northeast of Ft. Worth. Venture's John Zikos and Chris Booras represented American National Bank Special Assets LLC in the sale and assignment of two leases on the building to Studio Movie Grill Holdings, LLC. The Studio Movie Grill opened in late May. Town Center Colleyville is a 258,000-square-foot, grocery-anchored lifestyle center located in Tarrant County.
Boston - HFF has secured a $50.6-million for refinancing of a six-property, 224,001-square-foot retail portfolio in New England. Working on behalf of Linear Retail Properties, HFF placed the fixed-rate loan with Allianz Real Estate of America LLC.
Click here to read more about the retail portfolio.

Miami - Cohen Financial has secured a $38.2 million bridge loan for the acquisition of land and pre-development of River Landing, a mixed-use development in Miami. Upon completion, River Landing will feature 428,542 square feet of retail space and 508 multifamily units. Kevin O'Grady, Daniel Sheehan, Gregory Newman and Eric McGlynn of Cohen Financial secured the loan with North Star Realty Finance Corp. on behalf of the borrower, River Landing Development LLC.

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