(For more retail coverage, click GlobeSt.com/RETAIL.)
BOSTON-New York-based NorthStar Realty Finance Corp. out-bid at least 10 other prospective buyers to add 10 retail buildings to its portfolio. The REIT's winning bid totaled $63.3 million.
The buildings, nine Dick's Sporting Goods stores and one PetSmart, are all newly constructed properties at or near major regional malls. The leases have between 15 and 20 years remaining on them, James Koury, with Jones Lang LaSalle's Boston office, tells GlobeSt.com.
The seller, Berkshire Development of Springfield, had two full price offers on the assets, Koury says, but selected NorthStar because of the firm's shorter due diligence period and expertise in acquiring similar assets.
"You don't see a lot of portfolios available with a dominant industry tenant and great locations," Koury says, adding that the assets lured investors who wanted "to acquire a critical mass of properties."
Dan Raffe, NorthStar's executive vice president of net lease acquisitions, tells GlobeSt.com that the portfolio met the firm's criteria for investing in high quality, net leased assets. "We really like this portfolio from a tenancy perspective, a location perspective and a lease structure perspective," he says, adding that the REIT plans a long-term hold for the properties. The properties are located in Bloomington, IL; Ft. Wayne, IN; Huntington, NY; Millbury and North Attleboro, MA; Concord and Keene, NH; South Portland, ME; and Wichita, KS.
Koury represented the seller exclusively and procured the buyer in the transaction.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
