JACKSONVILLE, FLA. — During its second-quarter earnings call, Regency Centers Corp. (Nasdaq: REG) reported same-property net operating income of $162.3 million for the three months ending June 30, a 20.1 percent year-over-year decrease. The Jacksonville-based company says all 415 of its shopping centers nationwide have remained open during the COVID-19 pandemic, with 95 percent of its tenants being open as of July 31. Regency Centers collected 72 percent of base rents for the quarter and has agreed to more than 600 lease rent deferrals. The shopping center REIT estimates that 96 percent of deferred rents will be collected by the end of 2021.
HERMOSA BEACH, CALIF. — CBRE has arranged the sale of a former restaurant and retail building located in Hermosa. A Greater Los Angeles-based private investor acquired the asset from a Los Angeles-based family for $4.8 million. Located at 2701 Pacific Coast Highway, the 6,031-square-foot building was originally built in 1963. The single-story property features 44 parking spaces and is zoned for commercial uses. Round Table Pizza recently vacated the property, which it had occupied for 30 years. Dan Riley, Jeff Pion, Simon Mattox and Austin Wolitarsky of CBRE represented the seller in the transaction, while the buyer was self-represented.
SCOTTSDALE, ARIZ. — SRS Real Estate Partners has arranged the sale of a single-tenant restaurant property located at 15416 N. Pima Road in Scottsdale. A Texas-based private investor sold the asset to an undisclosed buyer for $3.3 million. Built in 1996, the 3,386-square-foot building features a drive-thru. Wendy’s occupies the property on a corporate-guaranteed, triple-net lease through May 2032. Patrick Luther and Matthew Mousavi of SRS’ National Net Lease Group, along with Chris Stamets and Brian Gausden of Western Retail Advisors, represented the seller in the deal.
TURNER, ORE. — The Silver Group has brokered the sale of a single-tenant retail property located in Turner. Terms of the deal were not released. The asset consists of a newly constructed 9,800-square-foot retail building situated on 1.4 acres of land. Dollar General occupies the property on a long-term, absolute net lease. Barry Silver and Greg Cunha of The Silver Group handled the transaction.
SPRINGFIELD, ILL. — Cleeman Realty Group has arranged the sale of Kent Plaza in Springfield for an undisclosed price. County Market anchors the 94,260-square-foot retail center, which sits on 9.4 acres. The property was more than 90 percent occupied at the time of sale. Michael Cleeman and Sam Seelenfreund of Cleeman brokered the transaction. A Maryland-based private investment firm purchased the asset from the property’s original owner.
NARANJA, FLA. — TSCG has negotiated the $11.7 million sale of Naranja Lakes Shopping Center, a 90,450-square-foot, grocery-anchored retail property in Naranja. The property was 95 percent leased at the time of sale to tenants including Winn-Dixie, Family Dollar and La Colonia Medical Center. The asset is situated at the intersection of U.S. Highway 1 and Naranja Lakes Blvd., 29 miles south of downtown Miami. Anthony Blanco of TSCG represented the seller, an affiliate of Asheville, N.C.-based FIRC Group, in the transaction. An affiliate of Boston-based Longpoint Realty Partners acquired the property.
PITTSBURGH — Dick’s Sporting Goods will open three new stores in the Northeast region this month. The Pittsburgh-based retailer will debut two new stores in Massachusetts, a 45,000-square-foot location at Cape Cod Mall in Hyannis and a 48,000-square-foot location at Westgate Mall in the Boston suburb of Brockton. Simon Property Group and New England Development are the respective owners of those malls. A third, 65,000-square-foot store will open at Macerich’s Deptford Mall, located just outside Philadelphia in New Jersey.
KANSAS CITY, KAN. — Block & Co. Inc. Realtors has acquired a former Best Buy store located at 10500 Parallel Parkway in Kansas City. The purchase price was undisclosed. The 46,538-square-foot freestanding building sits on 4.2 acres within the 850,000-square-foot Plaza at the Speedway shopping center. David Block, Alex Block and Max Kosoglad of Block & Co. represented the buying entity. David Hickman of CBRE represented the undisclosed seller. Block & Co. will handle leasing and management of the vacant space, which can be leased to a single tenant or subdivided to allow for multiple tenants.
CHICAGO — Marcus & Millichap has brokered the sale of a 6,000-square-foot retail building occupied by Chase Bank and European Wax Center in Chicago for $3.7 million. The property is located at 3730 N. Southport Ave. Mitchell Kiven of Marcus & Millichap marketed the building for sale on behalf of the seller, a private investor. Kiven also procured the buyer, a New York-based developer specializing in boutique hotels. The property went under contract at the end of February, but as the COVID-19 pandemic worsened and the tenants closed doors, the buyer became wary of proceeding. Dean Giannakopoulos of Marcus & Millichap Capital Corp. assisted the parties in restructuring the transaction, which closed in July.
By Alex Patton Retail real estate investors in Boston are cautiously evaluating the risk profiles of tenants even as businesses reopen following temporary closures due to the COVID-19 pandemic. The emerging consensus is that until a vaccine is developed to safely treat the virus, the safest investments are tied to essential tenants with reliable incomes. That short list includes grocers, drugstores, home improvement businesses and liquor stores. Like the rest of the country, all nonessential retail businesses in Massachusetts were forced to close temporarily in early March, for what was originally expected to be a short period. After several weeks, the commonwealth’s government implemented a phased reopening system that allowed some retail businesses to resume operations. However, after months with significantly reduced income, a number of small retailers are declaring bankruptcy and permanently closing stores to save money. “The underlying question that permeates the retail investment industry, as an investor or a lender, is how much of the income is durable? In other words, which retailers are going to survive?” asks James Koury, senior managing director of investments at the Boston office of Institutional Property Advisors (IPA). “A vaccine would be a game-changer, but we can’t know if it will …