Six of the properties were acquired in a portfolio at a cap rate of 7%. The seller of the portfolio, which was 98% occupied at the time of the sale, was Philadelphia-based Lincoln National Life Insurance Co. The seventh property, Cochran Commons, was acquired at a cap rate of 6.6%. The seller was Charlotte, NC-based Raley-Miller Properties. The partnership has locked interest rate on 10-year, interest-only debt at an all-in coupon rate of 5.95% on five of the acquired properties. The debt, representing a 50% loan-to-value ratio, is expected to close within 60 days. Regency will own 20% of the properties.
The properties acquired were King Plaza, an 81,432-sf Publix-anchored center in Atlanta; Island Crossing, a 58,455-sf Publix-anchored center in Port St. Lucie/Fort Pierce, FL; Lost Mountain Shopping Center, a 72,568-sf Publix-anchored center in Atlanta; Surfside Beach Commons, a 62,827-sf Bi-Lo-anchored center in Myrtle Beach, SC; Highland Knolls, an 87,469-sf Randall's-anchored center in Houston; Raley's Supermarket, a 59,880-sf Raley's-anchored center in Sacramento; and Cochran Commons, a 60,020-sf Harris Teeter-anchored center in Charlotte, NC.
"The properties in the portfolio were all grocery-anchored which is what we look for," Regency Centers Corp. senior vice president, acquisitions and dispositions Barry Argalas tells GlobeSt.com. "Three of the six properties were anchored by a Publix which was a draw."
Argalas adds the properties are considered core assets and there are no immediate plans for capital improvements.
In a separate transaction, Regency also contributed three completed developments into its open-end fund, Regency Retail Partners LP. Falcon Ridge Phase Town Center Phase II in Riverside, CA was contributed at a gross sales price of $26.9 million. Ten-year mortgage debt on the center has been locked at a coupon rate of 5.91%. Fortuna in Washington, DC, was contributed at a gross price of $20.1 million. Ten-year interest-only mortgage debt has been locked at a coupon rate of 6.18%. An additional phase of Orchards Market Center in Vancouver, WA was contributed to the fund at a gross sales price of $9.5 million. The properties were contributed at a weighted average cap rate of 6.3%.
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