Developer JVs in Shopping Center Interest Buy

COSTA MESA, CA-Locally based shopping center developer Donahue Schriber purchased Pardee Homes’ interest in its Del Mar Highlands Town Center in San Diego. Donahue Schriber has formed a joint venture partnership with the Canada Pension Plan Investment Board, a professional investment management organization, to accomplish the transaction.

This is the first joint venture between Donahue Schriber and CPPIB, and according to Donahue Schriber president and CEO Patrick Donahue, the investment “validates” the company’s long term West Coast US-based grocery-anchored shopping center strategy. The strategy he speaks of calls for Donahue Schriber’s presence in “all Western states—including Idaho, Montana, New Mexico, Utah, Washington and Wyoming.” Generally, Donahue Schriber is interested in acquiring anchored centers with a minimum GLA of 75,000 square feet and a minimum value of $7 million. However, according to the company’s website, those parameters are readily adjusted to account for any value-added opportunity component.

As a private REIT, Donahue Schriber was unable to divulge how much the interest was purchased for, but CEO Donahue tells GlobeSt.com that Del Mar Highlands Town Center has always produced strong states. “It has excellent demographics, two major grocers, lots of daily trips and a solid merchandising mix throughout.” He also notes that the company plans to continue to enhance the productivity of the center.