Shopping Centers Today is the news magazine of the International Council of Shopping Centers (ICSC)
Issue link: https://sct.epubxp.com/i/513366
T H E B O T T O M L I N E $14.3 million DNA Partners bought a 137,200-square- foot center in Germantown, Tenn., anchored by Hobby Lobby and Bed Bath & Beyond, from Finard Germantown $20 million The Rosen Group, of New York City, bought Bradley Park Crossing, a 116,800-square- foot power center in Columbus, Ga., from DDR $33 million JH Real Estate Partners bought Hawaiian Gardens (Calif.) Town Center, a 124,600-square- foot Walmart Neighborhood Market–anchored center, from HP Investors $51 million American Realty Advisors acquired the 283,500-square- foot Dublin (Calif.) Place shopping center from PFRS Dublin Corp. Tenants there include Burlington Coat Factory and Hobby Lobby $53.5 million Weingarten Realty Investors bought Wellington (Fla.) Green Commons, a 112,400-square- foot, Whole Foods– anchored retail center in Palm Beach County, from Schmier & Feurring Properties $87.5 million Federal Realty, Grass River Property and The Comras Co. acquired an 80 percent stake in the 198,000-square- foot CocoWalk, in Miami, from PMAT Real Estate Investments, of New Orleans $454 million General Growth Properties sold 12.5 percent of the 2.2 million-square- foot Ala Moana Center, in Honolulu, to TIAA-CREF. The firm sold a 25 percent stake to AustralianSuper in February for $907 million 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 Supermarkets energize power center pricing Developers are finding profits in adding grocery stores to ex- isting power centers. Kimco Realty, for one, has made it a primary strategy for its redevelopment pipeline. Presi- dent, COO and Chief Investment Officer Conor Flynn said on the company's first-quarter earnings call: "This is the sweet spot for our redevelopments. Nongrocery power centers sell at lower cap rates than ones without. It compresses the cap rate 50 to 150 basis points when you can add the grocery component into a power center, depending on the location and surrounding retailers." Flynn says Kimco initially planned to add only specialty su- permarkets such as Fresh Thyme and Lucky but discov- ered that adding traditional grocers such as Publix and Safeway brings the same benefits. "It's a great thing to boost surrounding retailers' sales," he said, "because the traffic flow is dramatically increased when you have that grocery component." The strategy is beefing up Kimco's reliance on supermarket tenants, with 71.2 percent of the first-quarter average base rent coming from supermarkets, compared with 65.8 percent the previous quarter. Small-shop leasing is going strong at U.S. open-air centers, at least at the top-tier properties owned by REITs, executives said while discussing first-quarter results. "This quarter, rent growth on new leases was nearly 30 percent, coming entirely from shop space," said Regency Centers President and COO Brian Smith. The company aims to bring its small-shop occupancy level to 92 percent by year-end, he said, adding that the biggest obstacle to achieving that occupancy is a decline in the number of existing tenants moving out. "This quarter has the lowest amount of move-outs on record," he said. Small-shop tenants drive NOI 58 S C T / J u N e 2 0 1 5 S O U R C E : S N L F i N a N C i a L All REITs Retail REITs 1 2 3 4 5% 1Q '14 3Q '14 3Q '13 1Q '13 3Q '12 1Q '12 3Q '11 Same-store NOI One-year total returns S O U R C E : S N L F i N a N C i a L –5 0 5 10 15 20 25 30% 5/14 7/14 9/14 11/14 1/15 3/15 5/15 Equity Retail Russell 3000