Big Shopping Centers in joint venture partnership with Red Development
Phoenix -- Big Shopping Centers USA and Red Development have announced a joint venture partnership to maximize market presence and performance of select U.S. retail properties in the Midwest and West. The alliance seeks to acquire established, first-tier community, lifestyle and power centers with strong tenant line-ups and sales figures that are well positioned in markets throughout the United States.
"Big USA joined with Red to pursue high-quality retail assets in targeted, high-growth, stabilized US markets for long-term hold," said Stanley L. McElroy, Jr., president, Big Shopping Centers USA. "The complementary and proven expertise of both teams that has built our respective retail real estate portfolios and reputations really makes this synergetic partnership work – and beneficial to both companies."
The inaugural investment of Big Red Portfolio includes four shopping center properties in two states totaling 1.5 million square feet:
• Regency Court (Omaha, Neb.): a 171,000-sq.-ft. enclosed specialty center on Dodge Road in the heart of Omaha; transaction closed April 3.
• The Shops at Hilton Village (Phoenix, Ariz.): a 93,000-sq.-ft. specialty center with 25 boutiques, restaurants and services catering to affluent Scottsdale residents; transaction closed April 1.
• Village Pointe (Omaha, Neb.): a 601,000-sq.-ft. power and lifestyle center recognized as the destination for upscale national brands.
• Camelback Colonnade (Phoenix, Ariz.): a 618,000-sq.-ft. power center, situated along Camelback Road in the heart of Camelback Corridor; transaction closed December 31.
"We knew Big USA would be an ideal partner for Red as we pursue our strategy of forming joint ventures with top-quality organizations so we can grow through smart acquisitions and strong operations," said Michael Ebert, managing partner, Red Development. "Our combined new entity with Bie launches with a wonderful collection of high-performing properties that successfully mix retail, dining, entertainment and everyday services to resonate with local shoppers that similarly connect with communities for robust performance."
The new portfolio combines properties that have been owned separately by Big USA and Red with plans to add additional properties to the portfolio. In the joint venture, Big USA acts primarily as a co-investment partner contributing strategic leasing and management direction while Red will manage, lease and operate the assets. Both firms have worked together as owners of the successful Village Pointe property since 2010.
Along with the portfolio launch, Red also commences management of four Big USA assets including Fullerton Town Center (Fullerton, Calif.); The Shops at Vineyard Village (Euless, Texas); Sunset Esplanade (Hillsboro, Ore.); and Towne Center East (Signal Hill, Calif.).