Phoenix -- Vestar Development Co. and Rockwood Capital on Tuesday acquired Tempe Marketplace for $280 million by buying out an original partner. In conjunction with the closing, Tempe Marketplace received a new $200 million permanent financing package from GACC.
Vestar was the developer of Tempe Marketplace and had previously partnered with DLJ/Credit Suisse. Both Rockwood and Vestar made significant investments in the acquisition. Under terms of the deal, Vestar will be the managing partner.
At $280 million, this transaction is the largest real estate transaction completed in Arizona in 2010 and one of the largest shopping center transactions completed in the United States during 2010.
"We believe in the real estate fundamentals in the Tempe market and this asset's ability to provide healthy risk-adjusted returns with limited downside due to strong in-place income," said Joel Mayer, head of Retail at Rockwood Capital. "And Vestar is the ideal developer to partner with to maximize operations because of their extensive knowledge of the asset and the market."
Vestar intends to close next week on two retail properties in California, totaling approximately 400,000 sq. ft. And in mid-December, another acquisition of another major project in Arizona is expected.