(For more retail coverage, click GlobeSt.com/RETAIL.)
PITTSBURGH-Wanting to liquidate its holdings here, locally based Costa Land Co. Inc. has placed a three-property retail portfolio up for sale. The properties are located within the Robinson Retail Complex.
Costa Land has enlisted the local office of Holliday Fenoglio Fowler to market the 347,386-sf portfolio, which carries an asking price of $75 million or nearly $215.90 per sf. "The owner believes this is truly a seller's market and wants to liquidate his Pittsburgh holdings," says Nick Matt, managing director of the local HFF office and head of the marketing team for Costa. The sale at the asking price represents a cap rate of 5.9%, he tells GlobeSt.com, and says the properties are being marketed together or individually. The portfolio is 100% leased long term.
It is located in the Parkway West retail corridor that connects to the CBD. The largest is Plaza at the Pointe, a 149,342-sf community strip center at 162 Quinn Dr. It was built in 1998. Among the tenants are a 28,250-sf Bed Bath & Beyond, a 22,000-sf Barnes & Noble, an 18,000-sf Michaels, 16,800-sf Old Navy and 15,400-sf Ulta Salon in addition to in-line tenants.
It is shadow-anchored by a 59,100-sf Roomful Express home furnishings store at 200 Quinn Dr., which is also a part of the portfolio. The freestanding building was constructed in 2003.
The third property is the 138,044-sf Robinson Crossroads power strip center on Steubenville Pike. It was built in 1997 and is anchored by an 87,519-sf Giant Eagle. Other tenants are a 23,925-sf Staples and an 18,600-sf Pep Boys, plus 8,900 sf of in-line shops.
Matt says $48 million in debt was recently placed on the properties. "Each asset is separately financed and the properties are neither cross-collateralized nor cross-defaulted. All the loans are in lockout periods and do not permit secondary financing. The buyer would need to assume the debt and pay the remaining $27 million." He estimates net operating income, excluding expenses, on the full portfolio at about $4.4 million a year.
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