(Mark Your Calendars: RealShare REAL ESTATE 2012, March 22nd in Los Angeles).
COSTA MESA, CA-Following the developer’s $1.2-billion recapitalization last July, Donahue Schriber has acquired two California coastal shopping centers: The Crossings at Paso Robles and Mandalay Village Marketplace in Port Hueneme, CA.
“These two assets fit our strategy of focusing on California coastal communities,” Dave Mossman, EVP and chief investment officer of Donahue Schriber, tells GlobeSt.com. The company’s “aggressive acquisitions plan” also includes targeting retail properties in the Pacific Northwest.
Developed in phases from 1999 to 2005, the Crossings, a 310,161-square-foot center that includes Ross, OfficeMax, Pier 1 Imports, Orchard Supply Hardware, Michaels, Petco and the city’s only Target, was purchased from the property’s original developer, Ellis Partners, for a price not revealed to GlobeSt.com. The Crossings was 98% leased up at the time of purchase.
Ellis was represented by a team led by Dan Wald, a partner with Cassidy Turley, who characterizes the center as a “dominant power/promotional center.” As of year-end 2011, Wald’s retail investment sales team had closed more than 80 retail investment transactions comprising over 8.8 million square feet with a combined value of over $1.41 billion.
Mandalay Village was built in three phases as well, between 1989 and 2005. The 193,964-square-foot center anchored by Ralphs and CVS Pharmacy was previously owned by Weston Communities and also sold for a price not disclosed to GlobeSt.com. Mandalay Village, which was off market prior to purchase, was 80% leased up when the deal was completed.
“We will add some people, some places, and minor cosmetic remodel to it,” Mossman reveals to GlobeSt.com. “We can also add value by leasing it up from its current occupancy.”
Donahue Schriber assumed loans in both purchases and put up the difference in cash equity, Mossman continues. The cap rates for both sales could not be revealed. “We prefer to be an all-cash buyer, but we will assume loans if we believe in the assets,” he continues. The company has a buy-and-hold strategy for both properties.
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