TOLEDO, OHIO — The Cooper Commercial Investment Group has negotiated the sale of Great Eastern Shopping Center, a 335,000-square-foot retail center in Toledo for an undisclosed price. Super Dollar Tree, Dollar General and McDonald’s anchor the retail property. A New York-based private investment group acquired the property from a large institutional seller out of New York. Bob Havasi and Dan Cooper of Cooper Commercial Investment Group represented the seller in the transaction.
The battle between physical stores and online retail rages on, but the recent explosion in smartphone usage is blurring the battle lines. Using smartphones, consumers in a store now can simultaneously shop and compare pricing and product availability at competing stores or online. The practice is sometimes referred to as “showrooming.” Increasingly, retailers must simultaneously invest in a combination of brick-and-mortar stores, websites, digital marketing and merchandise delivery to sell goods. Only the real estate component of that infrastructure is subject to property tax. If property owners identify the portion of store sales attributable at least partially to online shopping, they can argue for taxable property values more accurately based on the remaining sales volume attributable to a store’s physical location and condition. Retailers that think mobile is a channel use the wrong metrics to measure the smartphone’s impact on retail. Smart retailers focus on the impact on overall business rather than trying to measure only app downloads or channel sales. Extrapolating a retail property’s value from base rent is relatively easy, but what happens when rent is based on sales? How do sales that take place in the store via smartphone, or online transactions that stem from a store …
BELLEVUE, WASH. — Vulcan Real Estate has acquired Bellevue Plaza, a 60,000-square-foot shopping center located in Bellevue, roughly 10 miles outside of Seattle, for $45.5 million. The center was approximately 75 percent leased at the time of sale to tenants including Hot Yoga Inc., Pogacha, Jimmy John’s and Toy’s Café. Situated along Main Street between 106th and 105th avenues in the heart of downtown Bellevue, the center is blocks away from Bellevue Downtown Park, Bellevue Square and Lincoln Square. Vulcan has no immediate redevelopment plans for the property, but aims to create a long-term vision for the site that will likely include new residential and retail uses. CBRE led the transaction with a team that included Jon Hallgrimson, Frank Bosl and Eli Hanacek.
GROVE, OKLAHOMA — Marcus & Millichap has negotiated the sale of a 9,196-square-foot Family Dollar in Grove. Tom Mann of Marcus & Millichap’s Tulsa office marketed the property on behalf of the seller, an individual/personal trust. Family Dollar was built in 2005 and is located at 1638 N. U.S. Hwy 59. Grove serves a portion of northeastern Oklahoma and derives business from its location extending from a portion of the east shore of Grand Lake, a major area of lake recreation serving Tulsa and surrounding towns.
CHICAGO — Mid-America Real Estate Corp. has arranged the $46.5 million sale of The Heritage Shops at Millennium Park, a 98,547-square-foot street retail property located in Chicago. Joe Girardi and Stan Nitzberg of Mid-America represented the seller, Acadia Realty Trust, in the sale of the property to Texas-based Hunt Investment Management. The asset is located at the southeast corner of Randolph Street and Wabash Avenue. Tenants at the property include LA Fitness Signature Club, McDonald’s, Fifth Third Bank, Ann Taylor LOFT, Lane Bryant/Cacique, Fannie May Candies, Intelligentsia Coffee and Sugar Bliss Cake Boutique.
COLONIAL HEIGHTS, VA. — Armada Hoffler Properties Inc. has closed on the acquisition of Southgate Square, a 220,000-square-foot retail center located in Colonial Heights, roughly 23 miles south of Richmond. The center was fully leased at the time of sale to tenants such as Burlington Coat Factory, Michaels, Staples, PetSmart, Sleepy’s and Jo-Ann Fabric and Craft Stores. Southgate Square is located in close proximity to Southpark Mall, a Walmart Supercenter and Dimmock Square, a 100,000-square-foot retail center that Armada Hoffler purchased in 2014. The Virginia Beach, Va.-based REIT purchased Southgate Square in exchange for approximately $21.1 million of debt and the issuance of roughly 1.6 million units of limited partnership interest in Armada Hoffler’s operating partnership.
NEW YORK CITY — After losing money for 13 consecutive quarters, teen apparel retailer Aéropostale Inc. (OTCQX: AROP) has filed for Chapter 11 bankruptcy protection. Aéropostale will close 113 U.S. locations, as well as all 41 stores in Canada, and could announce more store closures at a later date. Of the 154 stores closing, 117 lost money last year, and the rest generated little profit. Click here to see a complete list of planned store closures. Store closing sales are scheduled to begin in the United States during the weekend of May 7-8, and in Canada during the week of May 9. The company plans to “emerge from the Chapter 11 process within the next six months as a standalone enterprise with a smaller store base, increased operating efficiencies and reduced SG&A [selling, general and administrative] expenses,” according to a press release from the company. Any sale of the company would be announced within the next six months. “While initiatives such as the implementation of our two-chain Factory and Mall strategy and our merchandise repositioning have started to gain traction, the ripple effects of an ongoing dispute with our second-largest supplier put substantial strain on our liquidity while also preventing …
CARLSBAD, CALIF. — CBRE Capital Markets’ Debt & Structured Finance team has arranged a $43 million loan for Cornerstone Real Estate Advisers LLC to refinance Bressi Ranch Village Center, a retail center in Carlsbad. Michael Riccio and Mark McGovern of CBRE’s San Diego office secured the long-term, fixed-rate loan for the borrower. Delivered in 2010, the 116,403-square-foot center is 97 percent occupied by 30 tenants, including Stater Bros. and Trader Joe’s.
FORT COLLINS, COLO. — US Property Trust has acquired Mulberry & Lemay Crossing, an 18,988-square-foot shopping center located in Fort Collins, for an undisclosed price. Walmart and The Home Depot shadow anchor the center. Tenants at the property, located at 1281 E. Magnolia St., include RadioShack, Supercuts, Silver Mine Subs, The UPS Store, Qdoba, Dairy Queen, GameStop, Papa John’s, State Farm and Chase Bank.
SANTA CLARITA, CALIF. — Hanley Investment Group Real Estate Advisors (HIG) has arranged the sale of Bouquet Center, a 148,903-square-foot, grocery-anchored shopping center located in the Los Angeles suburb of Santa Clarita. The price was not disclosed. Ed Hanley and Kevin Fryman of HIG represented the seller, a Los Angeles-based private investor, in the sale of the property to an undisclosed, publically traded REIT. Built in 1985, the center underwent a $7 million renovation in 2007. Tenants at the 95 percent occupied property include Vons, CVS/pharmacy, Ross Dress for Less, Chase, Citibank, Wendy’s, Baskin Robbins, Jersey Mike’s Sub, Little Caesars Pizza and Payless ShoeSource.