The seller was Canada-based Dalfen America Corp. The 96.4% occupied center is anchored by a Winn Dixie, with Ace Hardware as a junior anchor. The buyers estimate the sale price to be 55% of the replacement cost of the center.
"The deal was extremely attractive because the property is well-anchored and is located in a strong market," Forge director of acquisitions Ted Anglyn tells GlobeSt.com. "We plan to hold the asset for five to seven years."
Among reasons for the acquisition are the strong demographics in the area. The center is in the Fort Myers/Cape Coral area, where retail growth is expected to be strong in the coming years due to population and personal income growth.
The property was acquired under the partnership's Community Reinvestment Partners II LP fund, the second fund launched to develop, acquire, renovate and reposition retail real estate in low-to-moderate income census tracts. The fund completed its first closing in September. Investor capital commitments totaled nearly $65 million, which is slightly more than 40% of the fund targeted equity of $150 million. The fund is expecting to close at the end of the first quarter.
Typical acquisitions for the fund are centers that range in size from 80,000 sf to 250,000 sf, are located in infill locations, are acquired at prices below replacement cost, have opportunities for redevelopment, have anchor tenants such as a dominant discounter or category killer and a stabilized, un-leveraged yield on cost of 8% to 10%. Anglyn says the fund will target properties in Alabama, Georgia, North Carolina, South Carolina and Florida.
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