Shopping Centers Today is the news magazine of the International Council of Shopping Centers (ICSC)
Issue link: https://sct.epubxp.com/i/400168
T H E B O T T O M L I N E $12.6 million Toronto-based Slate Retail REIT bought Stonefield Square, a 91,000-square- foot, Fresh Market– anchored shopping center in Louisville, Ky., from an undis- closed seller $13.2 million Norfolk, Va.–based Harbor Group International bought two London properties totalling 9,700 square feet and net leased to Sainsbury's. One is near King's Cross station, and the other is on the Thames' South Bank $24.7 million Inland Real Estate Corp. acquired the 109,000-square- foot Prairie Crossings, in Frankfort, Ill., from an undisclosed sell- er. Anchors are Bed Bath & Beyond, Office Depot and Sports Authority $28.5 million Heidenberg Properties Group, Norse Realty and Strategic Real Estate Partners bought the 218,300-square- foot Hershey Square, in Hummelstown, Pa., from Hershey Trust Co. $32.8 million Weingarten Realty Investors sold the 171,800-square- foot Shoppes at Paradise Isle, in Destin, Fla., to Stoltz Real Estate Partners. Best Buy, Big Lots, Michaels, PetSmart, Office Depot and Ulta anchor the center $223 million Excel Trust bought three shopping cen- ters, totaling 1.8 million square feet, in the Salt Lake City area from DDR Corp. Excel subse- quently sold off one of the properties to a third party it did not identify $365 million U.K.-based TIAA Henderson Real Estate bought a 75 percent stake in AMP Capital's Mt. Ommaney Shopping Centre, a 56,570-square- meter property near Brisbane, Australia DEAL OF THE MONTH Deal Barometer W H O I S P A Y I N G H O W M U C H F O R W H A T SOURCE: SNL Financial * Forecast SOURCE: Marcus & Millichap WP Glimcher deal celebrates diversity Until recently, Glimcher Realty had been pruning its portfolio to retain only the highest-quality proper- ties. But when Washington Prime, the Simon spin- off REIT with properties ranging from B-level malls to low-rent community centers, came calling with a $4.3 billion merger offer, the prospect of tapping Washington Prime's balance sheet was too good to pass up, said Michael P. Glimcher, chairman of the board and CEO. "Not having to repair a bal- ance sheet and a portfolio all at once is an easier task," he said. The new company will benefit from a broader range of tenants and property types, he says. "There's probably not a retailer that we won't be doing business with," he said. "Today's tenants are jumping from asset type to asset type." WP Glimcher will be using its investment-grade balance sheet to buy properties. The deal was structured so that the company could reduce debt by taking on partners, selling off properties and pulling other levers. Simon has become the first U.S. REIT to set up a global unsecured commer- cial-paper program, a lower-cost alternative to a bank credit line. A major benefit of commercial paper is that it does not need to be registered with the sEC as long as the debt matures within nine months. The proceeds may only be used on current assets (inventories) and not on fixed assets, such as a new development, without SEC involvement. The firm says it plans to issue up to $500 million in unsecured commercial paper from time to time. The notes will rank equally with all Simon's other unsecured senior debt. Simon taps commercial paper 70 S C T / N o v e m B e r 2 0 1 4 Equity REIT acquisitions, 2013–Oct. 2014 10/1/14 Houston 3,339,937 sf Atlanta 2,563,914 Los Angeles 2,143,713 Chicago 1,852,790 New York City 1,444,435 Orlando, Fla. 1,296,481 Dallas 1,250,314 Austin, Texas 1,234,114 Washington, D.C. 678.614 Cleveland 277,380 " M a r k e t " r e p r e s e n t s m e t r o p o l i t a n s t a t i s t i c a l a r e a o r m i c r o p o l i t a n s t a t i s t i c a l a r e a . Net absorption Asking rents '02 '03 '04 '05 '06 '07 '09 '10 '12 '13 '14* –140 –280 0 140 280 –6 0 6 12% –12 '08 '11 sf. millions