Phoenix Phoenix and Kansas City, Mo.-based RED Development said it has acquired Woodbury Lakes Shopping Center through a joint venture with an institutional partner.
The project, in Woodbury, Minn., was originally co-developed by RED. According to the company, RED and Opus Northwest built Woodbury Lakes for about $70 million in 2005 and then sold it to Hartford, Conn.-based Cornerstone Real Estate Advisors for $99 million in early 2006. When the property was recently returned to the lender, RED reacquired the open-air lifestyle center.
“This is the type of asset that exactly fits our new acquisition initiative,” said Dan Weber, principal for RED Development. “It’s a well-located core retail property with a diverse roster of quality tenants and significant upside via leasing and re-merchandising.”
The transaction is RED Development’s first acquisition as part of a new strategy to acquire completed or nearly completed core shopping centers that are either distressed or require a more hands-on approach to operations. RED Development said it will continue with its more traditional business model of ground-up development, but will take advantage of distressed opportunities in the marketplace, either as an equity owner or third-party developer/manager.
The center will be managed by RED Development’s property management division, RED Asset Management.
Woodbury Lakes is a nearly 400,000-sq.-ft. lifestyle center tenanted by H&M, Trader Joe’s, Michaels, DSW, Ann Taylor, Banana Republic, and Coldwater Creek.