- August 12, 2011
BUYER: BRE DDR BR Forum FL LLC (executive vice president: David Weiss), New York City
SELLER: Cole MT Fort Myers FL LLC
PROPERTY: 9322 and 9360-9390 Dynasty Drive and 3230-3274 and 3330 Forum Blvd., Fort Myers
PRICE: $29.4 million
PREVIOUS PRICE: $34.25 million, July 2011
BUYER: BRE DDR BR Northpoint FL LLC (executive vice president: David Weiss), New York City
SELLER: Cole MT Northpoint (Cape Coral) FL LLC
PROPERTY: 1803, 1811-1847 and 1851 N.E. Pine Island Road, Cape Coral
PRICE: $10.5 million
PREVIOUS PRICE: $10 million, April 2011
LAW FIRM ON DEED: Proskauer Rose LLP, New York City
PLANS, DESCRIPTION: A joint venture of DDR Corp. and an affiliate of Blackstone Real Estate Partners VII purchased the 458,394-square-foot The Forum at Fort Myers and 119,709-square-foot Northpoint Shopping Center for a combined $39.9 million. The partnership paid $29.4 million for The Forum and $10.5 million for Northpoint.
The combined price equated to $69 per square foot. That figure is lower than the two-year average price per square foot for retail space ($144) in Southwest Florida, according to the CoStar Group.
The Forum features Target, Books-A-Million, Petco, The Home Depot, Ross Dress for Less and Bed Bath & Beyond. Vacancies include a 30,162-square-foot former Best Buy space and three smaller spaces ranging from 2,812 to 1,097 square feet.
Bed Bath & Beyond, PetSmart and A.C. Moore Arts & Crafts anchor Northpoint. The center includes a vacant 30,253-square-foot former Circuit City space and three roughly 1,400-square-foot empty tenant spaces.
The sale was done as part of a 71 shopping center portfolio sale from American Realty Capital Properties Inc. for $1.93 billion. The portfolio also included centers in Los Angeles, Houston, Denver, Chicago, Atlanta, Washington, D.C. and Phoenix.
Blackstone Real Estate Partners VII, a real estate fund managed by Blackstone on behalf of its investors, owns 95% of the equity of the joint venture and an affiliate of DDR owns the remaining 5%. DDR will provide leasing and management services and has the right of first offer to purchase 10 of the assets.
David Oakes, president and chief financial officer of DDR, says in a press release that the joint venture is considering reselling some of the lower performing centers.
DDR owns and manages 456 shopping centers with 125 million square feet of space in 42 states and Puerto Rico.
The purchase entities, BRE DDR BR Forum FL LLC, mortgaged The Forum to Wells Fargo Bank National Association for $21.77 million and BRE DDR BR Northpoint FL LLC mortgaged Northpoint to Wells Fargo for $8.95 million.