7 local properties in huge retail portfolio deal
Chicago Business reports: Seven Chicago-area retail centers, including the one on the site of the former Riverview amusement park in Chicago, were included in a huge shopping center portfolio deal this month.
The local centers, two in Chicago and five in the suburbs, total more than 1 million square feet and sold for an estimated $167.5 million. The properties are part of an 86-center portfolio in which Australia-based Macquarie CountryWide Trust is selling most of its 75% stake for $1.3 billion to a joint venture of the California Public Employees’ Retirement System and Bethesda, Md.-based First Washington Realty Trust Inc.
In the deal, CalPERS and First Washington are buying back many properties they sold to Macquarie in 2005, according to a recent report by New York research firm Real Capital Analytics Inc. This time around, CalPERS/First Washington is paying about 25% to 30% less than Macquarie paid four years ago, Real Capital says.
The deal values the entire portfolio at $1.73 billion. Dividing that price into the square footage not owned by tenants, the local malls would have these values, at about $162 a square foot:
• Riverview Plaza, 3322-3358 N. Western Ave.: $22.63 million
• Riverside Square and River's Edge Plaza, 3145 S. Ashland Ave.: $27.53 million
• Brentwood Commons, 1113 S. York Road, Bensenville: $20.4 million
• Civic Center Plaza, 7801 N. Waukegan Road, Niles: $43.05 million
• McHenry Commons Shopping Center, 2000-2078 Richmond Road, McHenry: $16.33 million
• The Oaks Shopping Center, 1515-1589 Lee St., Des Plaines: $21.94 million
• Stonebrook Plaza, 3205-3242 W. 115th St., Merrionette Park, $15.57 million
Grocery-store chain Dominick’s Finer Foods is an anchor tenant at five of the seven properties.
Riverview Plaza, near the corner of Belmont and Western avenues near the Roscoe Village neighborhood, is on the site of the former Riverview amusement park, which closed in 1967. The shopping center was built in 1981, according to CoStar Group Inc.
The deal almost matches the second-quarter total of $1.5 billion in significant retail sales in the U.S., Real Capital’s report says.
The CalPERS-First Washington joint venture is to buy at least 60% of Macquarie’s stake in the portfolio. Jacksonville, Fla.-based Regency Centers Corp., which owns 25% of the portfolio in a partnership with Macquarie, has options to increase its stake as part of the deal.
Macquarie CountryWide says that based on its estimated net operating income for 2009, the sale price represents a capitalization rate, or first-year yield, of 9.1%.
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Posted by: Nina Turner