FORT WORTH-Excel Trust Inc. has entered the Lone Star State with the $21.9-million acquisition of a Barnes & Noble-anchored shopping center located on Hulen Street.
The 86,831 square foot multi-tenant shopping center, known as 5000 South Hulen Shopping Center, is the retail REIT’s fifth acquisition since its IPO in April. The newly-formed retail REIT, which is led by Gary Sabin, former head of Excel Realty Trust Inc., raised $210 million when it debuted on the New York Stock Exchange, 22 percent less than it originally sought.
Excel Trust entered into an agreement to purchase 5000 South Hulen Shopping Center prior to its IPO. It has already closed on the acquisitions of Five Forks Place in Simpsonville, S.C.; Newport Center in Newport, TN; Red Rock Commons in St. George, UT; and Excel Centre in San Diego.
Located at the corner of Hulen Street and Overton Ridge Boulevard across from Hulen Mall, 5000 South Hulen Shopping Center is 94.3% leased to 19 tenants, according to the REIT’s SEC filings. In addition to Barnes & Noble, it is also anchored by Old Navy. Other tenants include Justice for Girls, Kirkland's, Jamba Juice, Cold Stone Creamery, Edible Arrangements and Portrait Innovations.
The property, which was developed by a joint venture between local investors The Woodmont Co. and Corrigan Properties, generates $1.9 million of annualized base rent, according to SEC filings. Excel Trust assumed a $15.2 million loan with a 5.6 percent interest rate that matures in 2014.
Excel Trust is targeting community and power centers, grocery anchored neighborhood centers and freestanding retail properties for acquisition. It prefers anchored shopping centers with 70% to 75% national credit tenants and long-term leases.
It already has one additional Texas property under contract, according to its SEC filings: Plaza at Rockwall Phase I, a 334,027-square-foot power center anchored by J.C. Penney and Belk Department Store. The REIT will pay $35 million for the three-year-old property.
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