Shopping Centers Today is the news magazine of the International Council of Shopping Centers (ICSC)
Issue link: https://sct.epubxp.com/i/122387
T H E B O T T O M L I N E Wells Fargo 2012 top lender Wells Fargo was last year's top commercial-mortgage originator, followed by Bank of America Merrill Lynch, PNC Real Estate, Prudential Mortgage Capital Co. and KeyBank Real Estate Capital, in that order, according to the Mortgage Bankers Association. Among the various lending types, Wells Fargo was the No. 1 originator of CMBS loans and Bank of America Merrill Lynch topped the list of lenders to commercial banks. MetLife Real Estate Investors stood for the life insurers, TIAA-CREF for the pension funds, HFF for the credit companies, KeyBank Real Estate Capital for the REITS and investment funds, and Cohen Financial represented the specialty finance side. One-year total returns 25 Q1 vacancy fell at U.S. centers Retail 20 U.S. regional malls performed well during the first quarter, All REITs according to research firm Reis. The vacancy rate in 15 this sector fell for the sixth straight quarter, down 0.3 10 percentage points to 8.3 percent, the biggest drop in a 5 decade. Average asking rents rose 0.4 percent from the previous quarter, to $39.46 per square foot yearly. 0 But U.S. neighborhood strip center performance was less –5 robust, says Reis, even though reduced openings offset –10 Apr '12 Jun'12 Aug '12 Oct '12 Dec '12 *As of April 3 3 anemic tenant demand. Some 10.6 percent of U.S. Apr '13* neighborhood strip center space was vacant at the end SOURCE: SNL FiN aNCia L of the first quarter, the firm says, off from 10.7 percent Same-store NOI 5% 4 Feb '13 in the previous quarter. Roughly 873,000 square feet of Retail sector new strip-center space opened up during the first quar- All equity REITs ter, up 0.04 percent from the fourth quarter of 2012, 2 when 1.23 million square feet opened. 1 Meanwhile, retailers absorbed 2.8 million square feet of 0 neighborhood strip-center space during the first quarter –1 — about even with fourth-quarter 2012 but off from the –2 year-ago first quarter. First-quarter average rent grew 0.3 –3 percent quarter on quarter, to $19.18 per square foot. –4 2Q '09 4Q '09 2Q '10 4Q '10 2Q '11 4Q '11 2Q '12 4Q '12 SOURCE: SN L FiNaNCi aL Deal Barometer W H O I S The national vacancy rate for neighborhood strip centers is 11 percent, well above the 2005 low of 6.7 percent. P A Y I N G H O W M U C H F O R W H A T DEAL OF THE MONTH $8.8 million $27.6 million $30.3 million $40 million $87.3 million $256 million $700 million Barrington, Ill.–based GK Development purchased the 559,000-squarefoot Lakeview Square Mall, in Battle Creek, Mich., out of foreclosure. Anchors include JCPenney, Macy's and Sears Sterling Organization, of Palm Beach, Fla., bought Center of Winter Park (Fla.), a nearly 260,000-squarefoot power center anchored by Kmart, from Main Street, of Tequesta, Fla. Prestige Properties & Development acquired the 139,350-squarefoot Van Dyke Commons, in Lutz, Fla., from iStar Financial. Golfsmith, HomeGoods and LA Fitness are among the tenants DDR bought the 400,000-squarefoot Marketplace at Highland Village, in Dallas, from an undisclosed seller. Tenants include Walmart and T.J.Maxx. Vestar and a fund advised by UBS Global Asset Management bought the 300,000-squarefoot Peninsula Center, in Rolling Hills Estates, Calif., from Principal Real Estate Investors Ramco-Gershenson Properties Trust bought Clarion Partners' 70 percent stake in 12 centers in Florida and Michigan, totaling 2.2 million square feet, Ramco-Gershenson already owned the other 30 percent Westfield Group will sell a 49.9 percent stake in a portfolio of six Florida malls totaling 5.9 million square feet to O'Connor Capital Partners 290 SCT / M a y 2 0 1 3