PATERSON AND WEST ORANGE, N.J. — R.J. Brunelli & Co. Inc. has negotiated two retail leases for Family Dollar totaling 20,082 square feet in Northern New Jersey. In the first deal, the discount retailer leased a 10,382-square-foot space formerly occupied by Rite Aid in Paterson for a store that is expected to open in the third quarter. In the second transaction, Family Dollar signed a lease for 9,700 square feet at an inline space in West Orange. That store is scheduled to open in October. Danielle Brunelli and Pete Nicholson of R.J. Brunelli represented Family Dollar in both sets of lease negotiations. Patrick Varelas of Remax represented the landlord in the Paterson deal.
FOUNTAIN VALLEY, CALIF. — Newport Beach, Calif.-based Buchanan Street Partners has purchased E405 Euclid Shops, a showroom retail center located at 18225 to 18349 Euclid St. in Fountain Valley. A Southern California-based family trust sold the asset for $24 million. Situated on 4.9 acres, the property features 91,517 square feet of flexible showroom and retail space. Current tenants include Sherwin-Williams, Guitar Center and Cort Furniture. Matthew Mousavi, Patrick Luther and Rich Walter of SRS National Net Lease Group represented the buyer and seller in the deal.
Ralph Cram, President of Envoy Net Lease Partners, LLC, is seeing dramatic change in the net lease space in 2021: in the past couple months he’s seen cap rates with 25 to 35 basis point drops on active deals, increased 1031 exchange activity and robust interest in net-lease properties. “What we’ve really seen in the last six months is the demand for investment-grade, net-lease properties has skyrocketed — partly because people aren’t buying nonessential or non-investment-grade tenants.” There is a supply constraint though: with many 2020 projects delayed, Cram anticipates 12 months before supply can reach the market — making for a tight market. Finance criteria for net lease clients, construction loan programs, development risks, outlining the process for lending overall and 2021 goals are concepts covered in this video interview for Finance Insight. This article is posted as part of REBusinessOnline’s Finance Insight series. Click here to subscribe to the Finance Insight newsletter, a four-part newsletter series, followed by video interviews delivered to your inbox in March.
FLORENCE, KY. — Ohio-based MAGNA Properties has acquired Florence Shops, a 50,068-square-foot, multi-tenant shopping center located at 7541-7565 Mall Road in Florence. The property was fully leased at the time of sale. Patrick Metz of Stan Johnson Co. represented MAGNA Properties in the $5.5 million acquisition. The seller was an undisclosed local developer. The Florence Shops is situated on 4.1 acres approximately 13 miles from Cincinnati. The acquisition includes additional development potential on an adjacent pad site. The center’s neighboring tenants include Kroger, Old Navy, Ulta Beauty and Barnes & Noble. The center was last renovated in 2015.
WACO, TEXAS — Dallas-based entertainment concept Main Event will open a 48,559-square-foot venue at Cottonwood Creek Market, a 285,000-square-foot shopping center in Waco owned by Houston-based NewQuest Properties. Main Event will join Topgolf and a 14-screen Cinemark Holdings Inc. as the other entertainment anchors at the center, which is located near Baylor University’s campus on the city’s southwest side. Main Event’s new location will feature 20 bowling lanes, multi-level laser tag areas and a virtual reality gaming space, along with food and beverage offerings. Construction is scheduled to begin this month and to be complete in the first quarter of 2022. Austen Baldridge represented NewQuest Properties in the lease negotiations on an internal basis. Dawn Greiner of SRS Real Estate Partners represented Main Event. Topgolf and Cinemark are scheduled to open this spring and summer, respectively.
SOUTHLAKE, TEXAS — Locally based financial intermediary Terrydale Capital has arranged a $1.7 million acquisition loan for a retail property in the Fort Worth suburb of Southlake. Driver’s Edge Auto Repair occupies the single-tenant property. Quinn Conway of Terrydale Capital arranged the loan, which was structured with a fixed 3.25 percent interest rate for five years and a 25-year amortization schedule, through an undisclosed bank. The borrower was also undisclosed.
NEW YORK CITY — WHP Global, a New York City-based firm that acquires global consumer brands, has purchased a controlling stake in Tru Kids Inc., the parent company of Toys ‘R’ Us. WHP Global joins a group of institutional shareholders that includes funds managed by Solus Alternative Asset Management and Ares Management Corp. Going forward, WHP will manage Tru Kids’ global business and direct its strategic expansion, which according to CNBC will include the reopening of some U.S. stores. Neither the network nor the companies involved in the deal specified how many U.S. stores would open or in what markets the reopenings would occur. New Jersey-based Tru Kids announced in 2018 that it would be closing and/or selling off all 735 Toys ‘R’ Us stores in the United States. However, the chain and its sister brand, Babies ‘R’ Us, still operate roughly 900 stores and e-commerce sites in other parts of North America, as well as in Africa, Asia, Europe, Australia and the Middle East. “Our investment in Toys ‘R’Us reflects our belief and passion for the brand,” said Yehuda Shmidman, chairman and CEO at WHP Global. “We are thrilled to be taking the reins of the world’s leading toy …
INDIANAPOLIS — The Klink Group of Marcus & Millichap has arranged the sale of a Walgreens-occupied property in the Nora submarket of Indianapolis for $3.7 million. The single-tenant building is located at 1505 E. 86th St. Jordan Klink of the brokerage marketed the property on behalf of the seller, Indianapolis-based Westfield Pointe LLC. The Klink Group also sourced the buyers, Nora LLC and PP Nora LLC. Both are based in Indiana.
RIVERDALE AND MANASQUAN, N.J. — R.J. Brunelli & Co. LLC has negotiated two retail leases for Dollar Tree in New Jersey. In the first deal, the discount retailer leased 9,200 square feet at Riverdale Crossing, a Walmart-anchored power center in Morris County. Dollar Tree will backfill a space formerly occupied by Pier 1 Imports. In the second transaction, Dollar Tree committed to a 9,460-square-foot endcap space at The Orchards at Wall, a 22,504-square-foot center in Manasquan that was also formerly occupied by Pier 1. Both stores are slated to open in the second quarter. Danielle Brunelli and Pete Nicholson of R.J. Brunelli represented Dollar Tree in both sets of lease negotiations. Ryan Starkman of Pierson Real Estate represented the landlord in the Riverdale Crossing deal.
CHAPIN, S.C. — Aztec Group Inc., a real estate investment and merchant banking firm, has secured $10.8 million in debt and equity for the acquisition of Chapin Crossing, a 72,714-square-foot, Publix-anchored shopping center in Chapin. Jason Shapiro, Sean Harrington and Joel Zusman of Aztec Group secured a 60 percent loan to cost, non-recourse loan, as well as joint venture equity. Located at 1235 Chapin Road, Chapin Crossing was built in 2017 and is situated at the southwest corner of Chapin Road and Lexington Avenue on 13.6 acres. The property includes a 45,600-square-foot Publix, 13,950 square feet of in-line retail space and a 13,164-square-foot multi-tenant outparcel. The shopping center’s tenants include Anytime Fitness, Marco’s Pizza, Bank of America, Palm Beach Tan, Pacific Dental, Jersey Mike’s, Verizon Wireless and Palmetto Health. Aztec Group arranged the financing on behalf of the buyer, a partnership led by affiliates of Miami-based CF Properties Corp. A Missouri-based life insurance company provided the 10-year loan, which features a fixed interest rate under 3 percent.