Pine Tree buys six centers for half-a-billion dollars
With availability of prime retail real estate at an all-time low, well-capitalized developers continue to snap up best-in-class centers at high prices.
This week, in partnership with a state pension fund, Chicago-based Pine Tree acquired six open-air centers in Ohio, Arizona, Florida, and Oregon for a total of $495 million.
Totaling 2.5 million sq. ft. of gross leasable area, the centers are all 95% leased with anchors that include Kroger, Target, Nordstrom Rack, and Dick’s Sporting Goods.
The transaction was sourced off-market and brings Pine Tree’s assets under management to nearly $2.5 billion dollars, according to a press release revealing the deal. The seller of the properties was not revealed.
“We are incredibly excited to add these large format, best-in-class assets with strong tenant performance to Pine Tree’s growing national essential retail portfolio at a time of increasing retail sector investor sentiment,” said Pine Tree’s chief investment officer Conor Bossy. “Pine Tree’s deep industry relationships with peers and capital partners allowed for an efficient off-market transaction.”
Properties included in the deal are:
The Fountains, Plantation, Fla. This 430,000-sq.-ft. open-air center is within the Plantation Midtown District, a mixed-use area featuring 860 acres of offices, retail shops, restaurants, and medical services, Key tenants: Kohl’s, Marshalls/HomeGoods, and Dick’s Sporting Goods.
Arrowhead Crossing, Phoenix. The 362,000-sq.-ft. center is positioned adjacent to the Peoria Sports Complex – the spring training home of the Seattle Mariners and San Diego Padres – and is directly across from Arrowhead Towne Center Mall. Key Tenants: Target, TJ Maxx, Ulta Beauty, HomeGoods, Burlington, Five Below, and Nordstrom Rack.
Easton Market, Columbus. Adjacent to Columbus’s massive Easton Town Center, this 501,000-sq.-ft. shopping center offers easy access from I-270 and is located near the headquarters of L Brands, Lane Bryant, Huntington Bank, and Chase Home Finance. Key tenants: Target, Lowe’s, Marshalls, HomeGoods, Nordstrom Rack, PetSmart, Burlington, Five Below, and T.J. Maxx.
Kenwood Square, Cincinnati. The 424,000-sq.-ft. center is located in in the Kenwood retail corridor near Kenwood Towne Center, one of the top-performing malls in the state. Key tenants: Dick’s Sporting Goods, T.J. Maxx, Michaels, HomeGoods, Marshalls, Five Below, and Ulta Beauty.
Polaris Towne Center, Columbus. According to Pine Tree, this 459,000-sq.-ft. grocery-anchored property is the dominant power center in the fast-growing northern Columbus submarket. Key tenants: Kroger, Target, Lowe’s, Best Buy, TJ Maxx, Sierra Trading Post, Ulta Beauty, and Five Below.
Tanasbourne Town Center, Hillsboro, Ore. The 300,000-sq.-ft. shopping center located in the Portland metro is located near several major employers. Key tenants: Target, Best Buy, Marshalls, Sierra Trading Post, Ulta Beauty, Nordstrom Rack, Michaels, and Petco.
Over the last two weeks, DLC Management Corp. closed two separate deals for three prime open-air centers totaling 800,000 sq. ft. of gross leasable area. The Elsmford, N.Y.-based company, which operates some 70 centers nationwide, secured some $2 billion in capitalization that it intends to use to keep expanding its portfolio.