Shopping Centers Today International

DEC 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 $12.25 million Sterling Organization, of Palm Beach, Fla., bought Peachtree Parkway Plaza, a 95,509-square- foot neighborhood center in Norcross, Ga., anchored by Goodwill, from DLC Management Corp. $18.5 million RDRA Advisors sold the 171,776-square- foot Penn Dutch Plaza, in Margate, Fla., to Davie, Fla.- based Ross Realty Advisors and Fort Lauderdale, Fla.'s SunCap Real Estate Investments $20.5 million RD Management LLC, of New York City, bought Merchants Crossing, a 323,061-square- foot, Sears- anchored center in North Fort Myers, Fla., from Noble Properties, of Palm Beach Gardens, Fla. $40.5 million Retail Properties of America is buying Towson Square, a redeveloped prop- erty containing a new movie theater and restaurants, adjacent to Retail Properties' Towson (Md.) Circle center, from Baltimore- based Cordish Cos. $70 million Inland Real Estate Income Trust purchased Fresno, Calif.'s 224,683-square- foot Marketplace at El Paseo, from Rich Development and Gryphon Capital. Tenants include Burlington Coat Factory, Marshalls $156 million On behalf of a cli- ent, CBRE Global Investors bought the 27,000-square- metre Glaci-Galerie Shopping Centre, in Neu-Ulm, Bavaria, from Procom and OFB. Anchors include Zara and H&M $182 million Davidson Kempner is buying a 1.1 million-square-foot portfolio of five retail centers in Ireland that had fallen under receiv- ership 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 U.S. property prices level off Retail property prices are hitting a plateau, but this portends no imminent industry downturn, according to experts at ICSC's NOI + Asset Management Conference, in Dallas. While some analysts are equating current market condi- tions with those in 2007, the situation is considerably more stable, even with pricing at 20 percent to 30 per- cent higher than that year, said Mark Gibson, executive managing director of Dallas-based HFF commercial real estate. "There was a lot of gamesmanship then, with leverage on leverage on leverage — that won't be the case this time." Not to say there are no concerns. "There's excess liquidity and a fear that this will eventually create an asset bubble," said Gibson. Additionally, the bid field for retail deals has almost dropped in half in the past 90 days, he said. "We are in the price-discovery phase, or what we call price apathy." Mark Myers, executive vice president of commercial real estate for Wells Fargo Bank, says retail property prices "are pla- teauing" and finally settling into a period of smaller rent growth — or what he calls "lower for longer." The market is now seven years into the recovery, or about the time most cycles begin to play out, he said. International investors continue to seek retail properties in Ireland. Many inves- tors are drawn to Ireland when priced out of the U.K. market, says Brian Lavery, director of CBRE's Belfast office. Recent deals include New York City–based York Capital Management teaming with Ireland's Clarendon Properties to buy the Hazel portfolio of three Irish retail centers for $139 million. In another recent Irish deal, Marcol bought the 90,000-square-foot Lisburn Square, in Belfast, for $3.38 million. Rockspring also bought the Fairhill Shopping Centre, in Bal- lymena, for an undisclosed price. Investors seek green in Ireland 142 S C T / D E C E M B E R 2 0 1 5 YUM GOES IT ALONE IN ASIA Yum Brands plans to separate its China business from the rest of the company. The new entity, Yum China, will be publicly traded and act as a franchisee of the KFC, Pizza Hut and Taco Bell brands in mainland China. Yum Brands entered China in 1987 with KFC and has been a big sales driver for the retailer in the past. But the business has struggled in recent years, dragging the overall company down and causing Yum's activist shareholders to demand a spinoff. L I S b U R N S q U A R e

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