DDR Sells Shopping Center Portfolio in Utah for $223M
- Sep 30, 2014
In an off-market transaction worth about $223 million, DDR Corp., of Beachwood, Ohio, has sold to Excel Trust Inc., of San Diego, a portfolio of three shopping centers in the Salt Lake City area, the two companies announced Monday.
The three centers are The Family Center at Fort Union, The Family Center at Orem and The Family Center at Taylorsville, which total about 1.8 million square feet.
In a related transaction, Excel sold the Taylorsville mall to a third party, which was identified as TriGate Capital, of Dallas, in a separate announcement by Lucescu Realty, of Newport Beach, Calif. Lucescu represented Excel in both transactions. TriGate is a private equity firm that focuses on the recapitalization and repositioning of real estate assets.
“The transaction is strategically aligned with each company’s portfolio objectives, given DDR’s desire to exit the Salt Lake City market and Excel’s aspiration to expand their presence in a market where they have an established corporate and operating presence,” according to the two companies’ announcement.
“It’s an institutional-quality portfolio of centers, with blue-chip tenant rosters … in infill locations with high barriers of entry,” Lucescu president Mark Lucescu said in a release.
The Family Center at Fort Union is a 682,279-square-foot community shopping center, anchored by Walmart, Smith’s Food & Drug, Gordmans, Dick’s Sporting Goods, Bed Bath & Beyond, Babies ‘R’ Us, Ross Dress for Less, OfficeMax, Michaels, DSW and Petco. The anchor and major tenants together occupy about 70 percent of the center’s GLA. Other tenants include Lane Bryant, GNC, FedEx, Chase Bank, Chili’s, Ulta, Verizon, Dollar Tree, In N Out Burger, Starbucks, Supercuts, Jamba Juice, Pei Wei, Five Guys and Chick Fil A. The property is situated on an approximately 60-acre parcel at Fort Union Boulevard and Union Park Avenue.
The Family Center at Orem is a 150,667-square-foot portion of a 281,931-square-foot community shopping center, anchored by RC Willey (NAP), Dick’s Sporting Goods, Toys ‘R’ Us (NAP), Babies ‘R’ Us, Jo-Ann Fabrics and Dollar Tree. Located on University Parkway, it’s across from University Mall (anchored by Macy’s).
The Family Center at Taylorsville is a 779,439-square-foot portion of an 857,866-square-foot community shopping center, anchored by Shopko, Harmon’s (NAP), FYE Superstore, Sports Authority, Jo-Ann Fabrics, 24 Hour Fitness, Bed Bath & Beyond, Ross Dress for Less and PetSmart. Situated on an 80-acre parcel at I-215 and Redwood Road, the property is 75 percent occupied, “which represented an ideal opportunity to add value through leasing, management and redevelopment expertise,” according to the Lucescu release.