Ramco-Gershenson Adds Shopping Center to Florida JV
- Aug 19, 2008
Ramco-Gershenson Properties Trust has sold the 330,000-square-foot Plaza at Delray shopping center in Delray Beach, Fla., to its $450 million joint venture with the state of Florida, which is advised by Heitman L.L.C. The JV secured $48 million in permanent financing for the center for five years at 6.0 percent interest. “This transaction allows us to maintain a 20 percent ownership interest in a very attractive center; pay off $43 million in permanent, company-level debt; and generate approximately $23 million in net proceeds, which will be used to fund our previously announced business plan,” president & CEO Dennis Gershenson said in a prepared statement. The Plaza at Delray is anchored by Publix Supermarket, Marshalls, Staples and Regal Cinema. It’s the ninth shopping center to be acquired by the JV, which now owns more than 2 million square feet of retail centers with an aggregate purchase price of about $353 million. In January, CPN reported on the same JV’s acquisition for $69 million of two shopping centers, one in Columbus, Ohio, and the other in west suburban Chicago. The 253,300-square-foot Olentangy Plaza in Columbus is anchored by Sunflower Market, an organic and natural grocery concept by Supervalu; Marshalls and Micro Center computer store. The 162,700-square-foot Market Plaza shopping center is anchored by Jewel-Osco, a Chicago-area grocery/drug brand owned by Supervalu. The transaction was financed at rates below 6 percent, with interest-only debt for five years at about 65 percent loan-to-value, according to a statement at the time from Ramco-Gershenson. Ramco-Gershenson Properties Trust is a fully integrated, self-administered, publicly traded REIT that owns, develops, manages and leases community shopping centers, regional malls and single-tenant retail properties nationally. Currently it owns interests in 89 shopping centers totaling approximately 20 million square feet of gross leasable area in 13 states. Founded in 1966, Heitman L.L.C. manages approximately $16.5 billion in assets invested directly and indirectly in real estate in the United States, Europe and Asia.