Shopping Centers Today International

MAR 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 $3 million Brixmor sold the 125,250-square- foot Packard Plaza, in Cudahy, Wis., to a Boca Raton, Fla.– based investment group. A Salvation Army store is set to open in a former Aldi space there $15.8 million Institutional Property Advisors sold the 229,140-square- foot River Valley Plaza, in Lancaster, Ohio, on behalf of an investor to a Canadian invest- ment group. Hobby Lobby and T.J.Maxx are anchors $28.4 million Simon sold the 164,000-square- foot Columbia Gorge Premium Outlets, in Troutdale, Ore., to Time Equities $53.7 million DDR Corp. bought the 254,000-square- foot Southmont Plaza, in Bethlehem Township, Pa., from Morris Bethlehem Associates. Best Buy, Dick's Sporting Goods, and Staples are tenants $84.5 million Merlone Geier Partners bought the 473,350-square- foot El Monte (Calif.) Shopping and Automotive Center, which includes a Lexus auto dealership, from Decron Properties $152 million AEW Europe's City Retail Fund bought a 750 square-meter flagship retail unit on Madrid's upscale shopping boulevard Calle Serrano from a joint venture between Rockspring Property Investment Managers and a local investor $170 million Armada Hoffler Properties REIT bought a 1.1 million-square-foot portfolio of 11 retail centers in the mid-Atlantic and the South Central U.S. from DDR Corp. and TIAA- CREF 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 58 S C T / M a r c h 2 0 1 6 T O P u . S . B u y E r ' S M a r k E T S * Retail square feet purchased by public U.S. REITs during 2015 and YTD 2016, as of Jan. 29, 2016 REgiONAL MALL SHOppiNg cENTER OTHER RETAiL TOTAL N E w Y O R k c i T Y 1 , 3 8 5 , 6 1 1 S F 7 , 3 1 4 , 2 1 1 S F 3 , 2 6 9 , 8 3 7 S F 1 1 , 9 6 9 , 6 5 9 S F wA S H i N g T O N , D . c . 1 , 3 6 5 , 0 0 0 3 8 5 , 6 1 9 1 , 2 2 4 , 3 9 4 2 , 9 7 5 , 0 1 3 D AY T O N , O H i O 2 , 4 5 1 , 0 8 6 — 1 9 2 , 5 0 1 2 , 6 4 3 , 5 8 7 c H i c A g O 1 5 0 , 2 8 6 3 7 , 9 9 5 2 , 0 0 2 , 1 7 0 2 , 2 1 0 , 4 5 1 p H O E N i x 4 1 6 , 0 0 5 1 6 4 , 7 2 9 1 , 3 7 1 , 7 7 5 1 , 9 5 2 , 5 0 9 M i A M i 7 2 , 0 0 5 3 6 1 , 7 8 4 1 , 5 1 2 , 0 0 5 1 , 9 4 5 , 8 0 8 S A N D i E g O 1 , 1 0 0 , 0 0 0 — 8 3 8 , 6 9 9 1 , 9 3 8 , 6 9 9 c O L u M b u S , O H i O 1 , 8 7 9 , 7 0 6 — — 1 , 8 7 9 , 7 0 6 H O u S T O N — 4 0 5 , 8 0 5 1 , 4 1 7 , 4 8 9 1 , 8 2 3 , 2 9 4 S E AT T L E 1 , 0 1 7 , 4 6 1 4 5 9 , 6 7 9 2 6 7 , 4 0 7 1 , 7 4 4 , 5 4 7 " M a r k e t " r e p r e s e n t s m e t r o p o l i t a n s t a t i s t i c a l a r e a o r m i c r o p o l i t a n s t a t i s t i c a l a r e a ( M S A ) . S o u r c e : S N L F i N A N c i A L after almost 100 years, Forest city opts for rEIT status One of the oldest publicly traded real estate companies in the U.S. celebrated the new year by becoming a REIT named Forest City Realty Trust. Cleveland- based Forest City Enterprises, which was founded in 1920, previously made a name by creating urban, high-density, mixed-use projects. The conversion has been generally well received among ana- lysts who follow Forest City. "There is a very large and established investment sector in the economy known as REITs," said Paul Adornato, a senior analyst at New York City–based BMO Capital Markets. "This sector has a very loyal and dedicated investor base. For- est City has been on the fringe of this universe for its entire life as a public company. The thought was, if Forest City converted to a REIT, that would attract more investors to the stock, which in turn would help the stock's valuation." There were benefits that the company, being a C corporation, could not enjoy, according to President and CEO David J. LaRue. "We weren't in the REIT in- dexes," he said. "There are investors that only invest in REITs, and there are investors who look for dividend or income-producing stocks — we were none of these. As a REIT, we will have a broader base of investors and more de- mand for the company stock." At the time the company began desir- ing to focus on core markets and cities, its portfolio was more diversified than it is today, according to LaRue. "We started selling off some long-held assets," he said. "We focused on reducing debt. We started using net operating losses." The company wants development to comprise somewhere between 8 and 12 percent of the balance sheet, LaRue says. "We want to be lower-levered. Selling off the old assets was leading us toward a tax- able position, another mark outside the box — where investors were looking for operational efficiency." F O R e S T C I T Y S O l d A 5 1 P e R C e N T S T A I N W e S T C H e S T e R ( N . Y . ) R I d G e H I l l T O Q I C .

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