Shopping Centers Today

JUL 2018

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

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8 S C T / J U L Y 2 0 1 8 T H E C O M M O N A R E A D E A L S & T R A N S AC T I O N S M ost retail property investors are looking to buy shopping centers to which they can add value through expansions, renovations and leasing, according to Real Capital Markets. In its annual Retail Investor Sentiment Report, the firm surveyed a range of retail sector professionals con- cerning their sentiments on various industry topics. $12.8 million Excelsior Capital Partners sold the 190,000-square- foot Lee Harvard Shopping Center, in Cleveland, to First National Realty Partners. Among the tenants are Family Dollar, PNC Bank and USPS D E A L B A R O M E T E R A L O O K AT S O M E O F T H E PA S T W E E K ' S R E TA I L P R O P E R T Y T R A N S A C T I O N S $41.5 million DWS bought Wall Towne Center, a 99,100-square- foot center in Wall Township, N.J., from AEW Capital Management. Tenants include AT&T, GNC, Great Clips and ShopRite $40 million DDR Corp. sold the Fountains of Miramar, a 139,200-square- foot retail property in Miramar, Fla., to Stockbridge Capital Group. The new owner has chosen CREC to oversee management and leasing $29.7 million Merlone Geier Partners acquired the 77,300-square- foot College Plaza shopping center, in Fullerton, Calif., from a private investor. Among the anchors is a 99 Cents Only store $26 million Westwood Financial bought The Boardwalk at Andersen Springs, an 89,800-square- foot center anchored by the original Sprouts Farmers Market in Chandler, Ariz., from West Valley Properties $23 million First Washington Realty bought a stake in The Corbin Collection, a 163,700-square- foot retail redevelopment in West Hartford, Conn., from Seritage Growth Properties $18.4 million Private investor Myron Vogel bought Okee Square, a 124,000-square- foot shopping center in West Palm Beach, Fla., from Itzhak Ashkenazy and Jonathan Agus. Anchors include Advance Auto Parts and Michaels By Brannon Boswell Retail investors favor value-added properties: Survey The majority of investors surveyed say they are net buyers, but that year-over-year activity levels are down, essentially because quality assets are in low supply. There is pent-up demand for core product, the survey suggests, but sellers are putting few properties on the market. Moreover, many investors have narrowed their definition of "core product," weeding out what might otherwise be considered the more marginal centers. According to the survey, 18 percent of investors characterize their acquisition strategies as core or core-plus. Just over half are looking for value-add oppor- tunities, and the rest are looking for opportunistic acquisitions. Many buyers, whether they are private capital, entre- preneurs, foreign investors or large pri- vate-equity investors, are looking but not necessarily acting, unless a value com- ponent is present. Though a significant majority of investors are pursuing val- ue-add opportunities, the pool of attrac- tive value-add properties is shrinking, and, in turn, prices are escalating, says Clayton Elliott, managing director of Dallas-based PNL Cos. "Currently, price escalation seems to have less to do with cap-rate compressions and the projected interest-rate increases," he said, "and more to do with other market factors, such as competition for fewer deals." Anchored shopping centers remain the most attractive retail property segment, according to 48 percent of those surveyed, and strip centers were second, according to 23 percent. Conversely, those retail properties known as power centers may be some of the least attractive, owing to a higher concentration of big-box retail- ers among them. Nearly 40 percent of the survey respondents said they view big-box vacancy as the greatest threat to retail property investment. n 48 % ANCHORED SHOPPING CENTERS 8 % MALLS 14 % OTHER 7 % CONVENIENCE 23 % STRIP CENTERS

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