Edens closes $1.5 billion equity transaction
Columbia, S.C. — Edens Investment Trust has closed a $1.47 billion equity transaction composed of the $718 million sale of a 29% equity stake in the company and a $750 million equity commitment from the company’s institutional investors.
In the sales transaction, a Blackstone-sponsored real estate investment vehicle acquired a $718 million stake in Edens from the State of Michigan Retirement System.
Blackstone, the New York State Teachers’ Retirement System and institutional investors advised by J.P. Morgan Asset Management now own approximately equal shares in the grocery-anchored shopping center developer, owner and operator. Edens’ management owns approximately 7.5% of the company.
The three institutional investors plan to invest an additional $750 million in Edens to enable renovations and acquisitions.
According to the Wall Street Journal, the Edens investment represents a more conservative investment than usual for Blackstone, which typically buys into companies with problems and in need of turnaround capital. Blackstone repairs such companies and then sells them, aiming for 20% in annual returns.
Citing people familiar with Blackstone’s strategy, the Wall Street Journal said that Blackstone aimed to generate profits of 5% to 6% per year through Edens’ expansions.
Edens has expanded strongly over the past 17 years. In 1997, the private company was valued at $250 million. Today, Edens’ management puts the company’s value at $4 billion, with the goal of growing to $7 billion.
According to Edens, the company will use the $750 equity commitment to fund growth through select urban acquisitions, redevelopments and new developments in the major East Coast metropolitan areas of Boston, New York City, Washington, D.C., Atlanta, and Miami.
Glimcher acquires Arbor Hills in Ann Arbor, Mich.
Columbus, Ohio — Glimcher Realty Trust has acquired Arbor Hills, an upscale, open-air center located in Ann Arbor, Mich., in the main corridor that connects downtown Ann Arbor and the University of Michigan’s main campus. The new center, which opened in August, features 85,000 sq. ft. of leasable space and is approximately 87% leased. Tenants include Anthropologie, Arhaus, lululemon athletica, Madewell and The North Face. The property is expected to average above $500 per square foot in sales.
Glimcher purchased a 93% interest in the property through a newly formed join venture. The gross purchase price was $52.55 million. It was funded primarily through a combination of property level debt and working capital.
The North Shore Property Group and Campus Realty developed Arbor Hills.
RadioShack opens Penn Station pop-up
Fort Worth, Texas — RadioShack has opened its newest Manhattan location as a pop-up concept store at Penn Station. The limited-time-only location is the third RadioShack pop-up store to open in Manhattan.
In addition, RadioShack has opened a total of eight concept stores in the Manhattan area. The newest pop-up opened five days after construction began.
"New York is a critical market for us as we reinvigorate the RadioShack brand," said Joe Magnacca, CEO of RadioShack. "We debuted our new store format here in June at Broadway and 81st Street, and we continue to launch our new interactive concept stores in the city as a way to introduce not only New Yorkers, but visitors from across the country and around the world to the new RadioShack."