Shopping Centers Today International

JAN 2016

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 $13.4 million Mason Asset Management and Namdar Realty Group bought the 732,000-square- foot Voorhees (N.J.) Town Center from PREIT $27.4 million RPAI sold The Shops at Boardwalk, a 122,400-square- foot center in Kansas City, Mo., to ACF Property Management. Tenants include Gold's Gym, Jos. A. Bank, Kirkland's and Chipotle $30 million Inland Real Estate Income Trust Inc. acquired the 158,000-square- foot Village at Burlington Creek, in Kansas City, Mo., from NorthPoint Development Co. Sprouts Farmers Market anchors the center $42.7 million GK Development acquired Lake Mead Crossing, a 407,000-square- foot shopping center in Henderson, Nev., from Lake Mead Crossing, LLC. Big Lots, Marshalls, PetSmart and Ulta anchor the center $56.3 million CBL & Associates Properties will sell the 210,000-squarefoot Mayfaire Community Center, in Wilmington, N.C., to Principal Real Estate Investors. Dick's Sporting Goods and Marshalls are tenants $100 million Primestor bought the 315,000-square- foot Panorama Mall, in Panorama City, Calif., from Macerich. Anchors include Walmart and Curacao $115.3 million Kimco Realty Corp. purchased the 850,000-square- foot Christown Spectrum Mall, in Phoenix. Kimco says this is the only center in the U.S. to boast Costco, Super Target and Walmart as anchors 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. drugstore cap rates plunged in the third quarter Asking cap rates for single-tenant CVS, Rite Aid and Wal- greens properties hit a historic low in the net-lease drugstore sector in the third quarter, according to a Boulder Group survey. In fact, cap rates are so low that many institutional buyers can no longer make the numbers work, and thus private investors and 1031 ex- changers will continue to drive the market, according to John Feeney, a vice president at the brokerage firm. While cap rates across the board shrunk during the quarter, Rite Aid properties with five to nine years remaining on the lease had the greatest cap-rate compression year on year for the quarter: 85 basis points. Properties leased to CVS experienced the second-greatest level of com- pression: 50 basis points, to a 5 percent cap rate. The supply of freestanding drugstores up for sale has in- creased by about 20 percent from the year-ago third quarter as owners seek to cash in on high values, says Feeney. "These levels can be attributed to the histori- cally low interest-rate environment coupled with high demand amongst 1031 exchange buyers for long-term leased properties in a market constrained by limited ex- pansion plans," Feeney said. Boulder Group anticipates that the velocity of net-lease drugstore transactions will continue at a similar pace for 2016. 58 S C T / J a n u a r y 2 0 1 6 S O U R C E : S N L F i N a N C i a L '15 1Q '15 3Q '14 3Q '14 1Q '13 3Q '13 1Q '12 3Q '12 1Q All REITs Retail REITs 1 2 3 4 5% Same-store NOI % change One-year total returns S O U R C E : S N L F i N a N C i a L Retail sector All US equity REITS 10/15 12/15 8/15 6/15 4/15 2/15 12/14 –10 –5 0 5 10 15% High Street high Addington Capital and Och-Ziff Real Estate will buy the Retail Plus Property Trust portfolio of high-street stores in 12 U.K. cities for $92 million. "While the U.K. high- street sector has been under meaningful pressure during the downturn, we believe there are selective opportuni- ties within the sector that are attractive given the under- lying UK recovery," said Steven Orbuch , President of Och-Ziff Real Estate.

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