Ralph Tullier in TCC's local office, tells GlobeSt.com that Weingarten outbid 40 others for a package with nearly 200 tenants and coming to market as a take one or take all offering without a minimum ask. He says the sale was motivated by the properties' strong performances and the strength of the capital markets.
Granite made its first foray into the retail sector with the partnership, putting up the majority of equity for the play. Scott Martin, Granite's managing director in Houston, says the gain will be deployed into other retail opportunities by the JV partners.
The portfolio consists of the 410,000-sf First Colony Commons in Sugar Land, southwest of Houston; the 184,500-sf Tates Creek in Lexington, KY; the 161,900-sf TJ Maxx Plaza in Kendall, a suburb of Miami; and the 377,800-sf Largo Mall in St. Petersburg, FL. "These four centers have strong anchors, good demographics, high barriers to entry and are typical of the high-quality properties in which we invest," Drew Alexander, Weingarten's president and CEO, says in a press release.
First Colony Commons is a 12-year-old center at the southwest quadrant of US Highway 59 and Williams Trace Boulevard. The Sugar Land center, more than 95% leased, brings the Texas portfolio to 178 properties, totaling 10.7 million sf, says Tracy Pursell, the REIT's investor relations director. The center's anchors are Home Depot, Michael's, Office Depot and Conn's Appliances.
The Kentucky center gave Weingarten its first footing in the state. The 18-year-old Tates Creek, with a 98% occupancy and a Kroger anchor, sits at the northwest corner of Tates Creek Road and Man O'War Boulevard.
In Florida, the REIT now owns 21 properties totaling 4.4 million sf. The TJ Maxx Plaza is 95% leased asset positioned on the southwest corner of Southwest 117th Avenue and Sunset Boulevard in Kendall, a suburb of Miami. A Winn-Dixie grocery anchors the site along with TJ Maxx.
St. Petersburg's Largo Mall, laid out like a regional power center, is a 94%-leased asset at the southeast corner of Ulmerton Road and Seminole Avenue. Albertsons and Target own their anchor spots, a combined 577,000 sf. The roster includes Marshall's, Bed, Bath & Beyond, PetsMart, Staples and Michael's.
The seller was represented by TCC's Rusty Tamlyn and Tullier, who worked with Bill Brown, managing director of Granite Properties along with Whitney Knoll and John Crossman, both in TCC's Southwest retail investment services group.
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