In addition to their $9.1 million in equity, the new owners financed the deal with a $16.5-million mortgage through Greenwich Capital. Bala Cynwyd, PA-based Stomad Centers owned the center for five years, acquiring it in 2000 from Fashion Center Associates, according to property records.
The deal was struck at a going-in capitalization rate of 7.22%, says Principle Equity Investments' Michael McQuay, but had risen to 7.67% by the time it closed thanks to late leasing activity. Meanwhile, the interest rate on the loan was locked in at 5.3%, 22 basis points lower than anticipated, he adds.
The retail center one block west of the 1.5-million-sf Yorktown Mall has a 9% vacancy rate, according to CB Richard Ellis, which is marketing three storefronts. Anchor tenants include Best Buy, Toys "R" Us, Golf Galaxy, Books-A-Million, Ferguson Kitchen & Bath, Archiver's and Rec Room Furniture.
Built in 1983, the center was most recently renovated in 2004. In addition to a traffic count on Butterfield Road of 51,400 vehicles a day, average household income in the three-mile trade area is $88,840, according to CB Richard Ellis.
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