Cole Real Estate Investments and RED Development today announced the acquisition of Macerich’s interests in two retail power centers located in Chandler.
In a related transaction, Cole acquired 100% ownership of a third power center in Gilbert. The transaction value for all three properties is $100.55M.
As part of an ongoing joint venture, Phoenix-based partners Cole and RED Development are acquiring Macerich’s 50% ownership interests in the Chandler Festival and Chandler Village Center for $31M and $14.8M, respectively, for a total purchase price of $45.8M. RED will serve as onsite property manager and leasing agent for both properties.
Additionally, Cole is acquiring 100% ownership of SanTan Marketplace in Gilbert for $54.8M from Macerich and its investment partner. RED will also act as the leasing agent on this shopping center, while Cole will handle day-to-day property management.
All three assets are considered premier “power” shopping centers within the Southeast Valley submarket, and boast numerous creditworthy tenants with long-term leases.
“These power centers are all primary retail destinations in the Southeast Phoenix trade area and capitalize on the synergy and traffic of nearby regional malls,” said Thomas W. Roberts, executive vice president and head of real estate investments at Cole. “Each of these properties is anchored by nationally recognized, creditworthy retailers contributing solid fundamentals to our portfolio of core retail assets.”
“We are pleased to grow our portfolio to include Chandler Festival and Chandler Village Center, two high-quality, high-performing assets located in a very strong market where RED has developed three retail properties,” said Mike Ebert, managing partner at RED. “We look forward to applying RED’s extensive leasing, management, development and marketing experience to position both assets for future success as we continue to investigate similar acquisition opportunities as part of our joint venture.”
Cole was represented internally by Chuck Vogel, senior vice president, real estate joint ventures, and Clint Marchuk, senior director of acquisitions. RED was represented by Barry Shannahan, vice president of acquisition and development at the firm.
The Cole-RED joint venture, announced in September 2011, brings together Cole’s conservative investment strategy and capital markets access, with RED’s industry-leading in-house leasing, management and development capabilities. The primary acquisition target is high-quality, multi-tenant retail properties, including power centers and grocery-anchored shopping centers, with upside potential through the implementation of asset management and capital improvement programs to reposition the properties and maximize operational efficiencies. The joint venture of the two Phoenix-based firms is targeting investments in the $15M to $100M range, primarily in the Midwest and Western United States.