Shopping Centers Today

MAR 2015

Shopping Centers Today is the news magazine of the International Council of Shopping Centers (ICSC)

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T H E B O T T O M L I N E $17 million Redevco bought a building on Koning Albertstraat, in Hasselt, Belgium, containing 14,000 square feet of retail from ProWinko. The space is fully occu- pied by S. Oliver and Mango $33 million Donahue Schriber acquired the 91,300-square- foot, Whole Foods– anchored Gilman Village, in Berkeley, Calif., from Gilman Partners $37.3 million Retail Centers of America bought Colonial Landing, a 260,000-square- foot center in Orlando, Fla., from a joint venture of Weingarten Realty Investors and private investors. Tenants include Bed Bath & Beyond $95 million Loja Real Estate, of Walnut Creek, Calif., bought a 238,500-square- foot portfolio of four Chicago grocery store properties from Dominick's Finer Foods $181 million CBL & Associates Properties and The Richard E. Jacobs Group sold an 85 percent stake in the 1.2 million-square- foot Triangle Town Center and the adjacent Triangle Town Place, both in Raleigh, N.C., to an institutional investor $260 million Israel's Gazit-Globe boosted its owner- ship of Atrium European Real Estate by an addi- tional 14 percent, to a new total of 55 percent. Atrium develops malls in Eastern Europe $6.1 billion Australian landlord Federation Centres has plans to buy larger rival Novion Property Group for about $6.1 billion. The combined entity would have about $17 million in retail assets including 102 properties 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 Shopping center operational expenses 2014 SOURCE: NCREIF SOURCE: NCREIF Total shopping center operating income 2014 Store closings slowed in second half of 2014 U.S. retailers and restaurateurs announced plans to close 5,500 establishments in 2014, according to ICSC Re- search and PNC Real Estate Research. This is quite a jump from the previous year's record low of 2,500 an- nounced closings. But about 80 percent of the closures in 2014 were announced in the first two quarters of the year, before the economy began to accelerate. When only the latter halves of each year are compared, the combined third-quarter and fourth-quarter closing count in 2014 is actually 18.7 percent less than for the com- parable period in 2013. The 69.6 million square feet associated with the 2014 total remains near the 2011 figure of 65.3 million square feet. In addition, the 2014 space reduction represents only 0.4 percent of the total inventory of retail space in the country for the year. Phil- adelphia was the U.S.market that lost the most space to store closings last year, with about 1.5 million square feet of space going dark. Delia's, Naartjie, Destination Maternity, Sports Authority and Bottom Dollar were among the chains planning to close the most stores. As the economy improves, more retail REITs are buying out their institutional part- ners. Kimco Realty bought the remaining nearly 67 percent stake in the 39-prop- erty, 5.6 million-square-foot Kimstone portfolio it doesn't already own from Black- stone Real Estate Partners VII, for $925 million. "The third-party acquisition market for high-quality properties is heated and very competitive," said CEO David B. Henry on the firm's fourth-quarter earnings call. "As a result, wherever possible we will continue to purchase the equity interest of our institutional partners when they choose to monetize their investments." Buying back 58 S C T / M a r c h 2 0 1 5 Other 27.5% Property tax 40.8% Insurance 4.6% Utilities 9.2% Marketing 2.6% Management 9.7% Administrative 5.6% Other 2.8% Reimbursements 25.5% Contingent rent 1% Base rent 70.6%

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