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LAKE BLUFF, IL-On behalf of a state pension fund, Henderson Global Investors of London has retained locally based Pine Tree Commercial to acquire shopping centers in the Midwest and West regions. The all-cash fund of $100 million will allow for the seven- to 10-year hold of institutional and value-add properties.
Pine Tree founders Barry Herring and Peter Borzak, along with vice president of acquisitions Scott Goldman, discuss the fund's objectives exclusively with GlobeSt.com. Borzak says that although the partnership was just formed, the company has already located the fund's first acquisition property.
At a price of $36 million, the group purchased Gateway Centre in San Ramon, CA. The 110,400-sf center is anchored by an Albertsons and Walgreens, and boasts a 98% occupancy rate. "The fact that we're paying cash is a real strength," Borzak notes.
Goldman says the fund's criterion includes stabilized shopping centers in urban and suburban markets. "Our focus is on anchored institutional-quality centers where our ability to close quickly will give us a competitive advantage," he says. "We're generally looking in California, Portland, Washington State, Denver, Texas and Phoenix."
Borzak admits that prospective centers are always changing, but with quick closing capabilities the firm should be able to fulfill the fund's goals within a short time frame. "We think we'll be able to spend quickly, and we're having good success at identifying several properties," he tells GlobeSt.com. When the assignment is complete, Henderson Global Investors is expected to make a second fund available. As for the dollar amount, Borzak says, "we'll have to see when we get there."
Pine Tree, founded in 1995, has developed and acquired more than 50 properties valued at more than $350 million. "Our background as a shopping center developer allows us to add value to the acquisition process because of the insights we can bring to due diligence," Herring adds. San Diego-based Silver Portal Capital acted as advisor to Pine Tree during discussions.
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