Mid-America arranges sales of two centers in Midwest
Mid-America Real Estate Corporation’s Investment Sales team recently brokered the sale of centers in Michigan and Illinois.
The first deal was completed on behalf of PMAT Real Estate Investments, which sold Waterside Marketplace in Chesterfield Township, Mich. The 291,231-sq.-ft. open-air center was purchased by a middle market real estate investment firm founded in 2003 that is actively pursuing acquisitions nationally.
Situated at 23 Mile Road and Interstate 94 in the northeast suburban Detroit community, Waterside is a dominant regional power center that includes Dick’s Sporting Goods, Best Buy, TJ Maxx, Bed Bath & Beyond, and Old Navy and is shadow-anchored by Lowe’s and J.C. Penney.
The Mid-America team also brokered Clarion Partners’ purchase of the 58,000-sq.-ft. River Square in downtown Naperville, Ill. The shopping center features tenants Rosebud, Chipotle, Starbucks, Five Guys, Penzey’s Spices, and Bar Louie.
Northwestern and Phillips Edison join forces on a REIT
Northwestern Mutual, a large investor in commercial real estate, announced it will acquire an 85% interest in Grocery Retail Partners, a real estate investment trust managed by Phillips Edison & Company.
The REIT’s portfolio of 17 grocery-anchored centers across eight states is valued at $368 million, according to PECO, which will retain ownership of 15% of the company.
PECO, which owns and operates some 300 grocery-anchored centers, intends to use the proceeds of the sale to strengthen its balance sheet, fund redevelopment projects, and further expand its portfolio.
“Entering into this joint venture with Northwestern Mutual is a compelling illustration of the continued strength in grocery-anchored real estate,” commented CEO Jeff Edison in a press release.
In addition, Phillips Edison Grocery Center REIT III, which is currently sponsored and managed by PECO, has entered into a separate joint venture with Northwestern Mutual to create Grocery Retail Partners II. Northwestern Mutual will acquire a 90% interest, valued at approximately $46.5 million, in three grocery-anchored shopping centers currently owned by PECO III.
Exton Square Mall to add residential units
A 300-unit luxury apartment building will soon begin rising at PREIT’s Exton Square Mall in Chester County, Pa.
The developer, Hanover Company, completed its $10.3 million purchase of a 4-acre parcel on the grounds of the mall, located about 15 miles west of King of Prussia on the Pennsylvania Turnpike. The deal marks PREIT’s first re-make of one of its malls as a true mixed-use property.
“We are pleased to have completed this transaction as part of our densification program, which serves to improve the value of our assets and our liquidity position to strengthen our balance sheet,” said PREIT CEO Joseph F. Coradino in a press release.
PREIT kicked off its densification initiative in May, announcing opportunities for developers to partner with the company on 5,000 to 7,000 residential units and 1,500 to 3,000 hotel rooms at properties in the Philadelphia and Washington, D.C., markets.