Shopping Centers Today is the news magazine of the International Council of Shopping Centers (ICSC)
Issue link: https://sct.epubxp.com/i/739734
T H E C O M M O N A R E A 8 S C T / N O V E M B E R 2 0 1 6 DEALS & TRANSACTIONS $11.5 million 30 West Pershing LLC bought the 82,489-square-foot Regal Streets of Indian Lake movie theater, a portion of the Streets of Indian Lake shop- ping center, from U.S. Properties Group Indian Lake LLC $30 million Mattone Group LLC and Gartenstein Properties acquired ShopRite at Bay Shore (N.Y.), a 60,000-square-foot single-tenant retail property on Long Island, from G&S; Investors, of Port Chester, N.Y. $33 million Mason Asset Management and Namdar Realty Group bought Merritt Square Mall, an 811,300-square- foot regional mall in Merritt Island, Fla., from a special servicer $33.8 million High Real Estate Group and CBL & Associates sold a 132,000-square- foot portion of High Pointe Commons, Harrisburg, Pa., to Unison Realty Partners. Tenants include Chili's and Christmas Tree Shops $47 million Bourn Cos. LLC sold the 139,000-square- foot Wilmot Plaza, in Tucson, Ariz., to DSW Wilmot Plaza LLC. Dick's Sporting Goods and DSW anchor the center $62 million Chevy Chase Land Co. bought the 110,000-square- foot, Safeway- anchored South Lakes Village Center, in Reston, Va., from Cornerstone Real Estate Advisers $163.1 million Retail Properties of America will acquire the 342,000-square- foot One Loudoun Downtown, in Washington, D.C., from Miller & Smith and North America Sekisui House for a price based on per- formance thresholds 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 'B' malls score high with some investors Pacific Retail Capital Partners is unafraid of so-called 'B' malls. "A 'B' is just a few creative ideas away from an 'A,'" said Steve Plenge, managing principal of the Los Angeles–based firm. "Mall grades are weighted heavily on sales per square foot, though other factors such as location are included in the evaluation. But it is still the sales figure driving the process, which often gives short shrift to some 'B' malls that many investors see delivering 'A' returns," Plenge said. "The dis- tinction between a solid 'B'-plus and a 'B'-minus mall can be as little as $50 per square foot in sales. Investors and lenders who writeoff the 'B' or 'B'-minus properties are not looking at the big picture and are missing a number of key factors. One example is the often large pieces of well-located real es- tate under these malls." Many regional malls sit on properties up to 100 acres in the heart of communities, and are designed with sprawling surface parking that can accommodate additional develop- ment, including housing, Plenge says. "Housing demand can turn your 'B' to an 'A' very quickly, generating revenue and creating a built-in customer base." The firm recently bought a portfolio of three regional malls totaling some 2.8 million square feet from Simon in a joint venture with an unnamed European institu- tional investor. The centers, with combined value in excess of $200 million, offer the opportunity to improve performance through a program of active management, capital improvements and community-focused leasing," according to Plenge The deal includes The Galleria at White Plains, an 870,000-square-foot, four-level, enclosed regional mall in Westchester County, N.Y. Pacific Retail plans to add a food hall to boost business at the center, which features Macy's and Sears anchors. The deal also includes the 958,000-square-foot Northpark Mall, in Ridgeland, Miss., near the state capital of Jackson; and the 1 million-square- foot Esplanade, in Kenner, La. Pacific is considering adding residences to The Esplanade, Plenge says. A residential devel- opment firm wants to build a 265-unit, high-end apartment complex adjacent to the property. "Reviving 'B' and 'B'-minus malls and improving the asset takes a little ingenuity and customized planning," Plenge said. "A mall must offer a complete shopping solu- tion which serves as a central gathering place, compelling customers to return again and again." S C T Reviving 'B' and 'B'- minus malls and im- proving the asset takes a little ingenuity and customized planning