DDR, Blackstone close on $332 million portfolio
Beachwood, Ohio — DDR Corp. has announced that a joint venture formed with an affiliate of Blackstone Real Estate Partners VII L.P. has closed on the acquisition of a portfolio of seven prime shopping centers totaling 2.4 million sq. ft. The assets are located in supply constrained MSA’s including Los Angeles, San Diego, Washington D.C., Portland, Harrisburg, Pa., and Cincinnati.
The purchase price is $332 million, including assumed debt of $207 million and $28 million of new mortgage debt. Blackstone owns 95% of the common equity of the joint venture and an affiliate of DDR owns the remaining 5%.
DDR also invested $30 million in preferred equity in the venture with a fixed dividend rate of 9%. DDR will fund its investment through proceeds from asset sales. Various governance arrangements will allow DDR to potentially acquire four of the most dominant assets in the portfolio, which contribute over 80% of NOI.
DDR will lease and manage the properties in the portfolio, which is 93% leased and presents unique redevelopment and leasing opportunities, which should enable DDR to add value to the properties.
The shopping centers in the portfolio are:
• Silver Spring Square, Harrisburg, Pa., 573,000 sq. ft.
• Falcon Ridge Town Center, Los Angeles, 423,000 sq. ft.
• Sycamore Crossing, Cincinnati, 391,000 sq. ft.
• Indian Springs, Cincinnati, 349,000 sq. ft.
• Fortuna Center, Washington, D.C., 232,000 sq. ft.
• Orchards Market Center, Portland, 223,000 sq. ft.
• Vista Village, San Diego, 213,000 sq. ft.
Phase one of center court redevelopment completed in July; More to come
Honolulu — With 42 million visitors per year, the two million-sq.-ft. Ala Moana Center in Honolulu boasts sales per square foot of $1,300. At the beginning of the year, owner General Growth Properties began a massive $572 million redevelopment of Ala Moana — the world’s largest open-air shopping mall. The goal is to add 650,000 sq. ft. of new retail space.
To date, phase one of the center court redevelopment has been completed. The work has updated the common area finishes and restrooms and added new stores, including ‘Auana Quilts, which is now open, and Minamoto Kitchoan, a Japanese confectionery shop slated to open in September. Several existing retailers have relocated within the renovated Center Court area: Island Sole, Lupicia, Swatch, True Friends, Valerie Joseph and Watumull’s.
Phase two is underway and will finish up in November. It will add a Freaky Tiki Tropical Optical sunglasses store and a Nature Republic beauty shop and relocate four stores. It will also construct a new center stage and a new customer service center.
There’s a lot more to come. GGP has bought out the lease on the 340,000-sq.-ft. Sears for $250 million. The store will remain open as Sears throughout this year.
Back in May, GGP announced that a 167,000-sq.-ft., three-level Bloomingdale’s would serve as the centerpiece of the retail expansion in and around the Sears store, which will be demolished.
The retail expansion will include large format retailers, dining, entertainment and 200,000 sq. ft. of inline retailers.
Noble Roman’s signs eight more franchise locations
New York — Noble Roman’s, the franchisor of Nobel Roman’s Pizza and Tuscano’s Italian Style Subs, has announced signed agreements for eight more stand-alone locations, brining the total of signed locations to 29.
To date, eight locations are open and 21 are under development.