Ramco-Gershenson Sells 273,000SF Boca Raton Shopping Center to JV with ING
- Jan 18, 2008
Mission Bay Plaza, a 273,000 square-foot shopping center in Boca Raton, Fla., has become the latest addition to a joint venture involving Ramco-Gershenson Properties Trust and ING Clarion Partners. Ramco-Gershenson sold the Class A property to the joint venture for $74 million, netting $63 million after its equity contribution.Located on a nearly 25-acre parcel in an affluent area in the western section of Boca Raton, the 19-year-old Mission Bay Plaza is presently 97 percent occupied. Its tenant roster includes a 64,000 square-foot Albertson’s supermarket, a 42,000 square-foot Toys ‘R’ Us store, a 32,000 square-foot L.A. Fitness facility and a 22,000 square-foot OfficeMax store. Ramco-Gershenson has owned Mission Bay Plaza since 2004, when it purchased the asset from Investcorp for $62 million. The REIT is using the proceeds from the sale of the community shopping center to reduce existing debt and pay down its revolving credit facility.Ramco-Gershenson and ING Clarion formed their partnership in 2004 with plans of investing a total of $450 million on the acquisition of retail properties. With the addition of Mission Bay Plaza, the joint venture’s portfolio now encompasses 3 million square feet of retail space in 17 shopping centers that were purchased for an aggregate $524 million. Among Ramco-Gershenson and ING Clarion’s other recent acquisitions is the 93,000 square-foot Old Orchard Shopping Center in West Bloomfield, Mich., which the team bought last August. Farmington Hills-based Ramco-Gershenson owns develops, acquires, manages and leases a range of retail property types that includes community shopping centers, regional malls and single-tenant assets across the country. Currently, the REIT’s portfolio consists of 89 properties with a total of 19.8 million square feet of gross leasable retail space in the Midwest and the South, as wall as on the East Coast. ING Clarion is the U.S. investment management arm of international real estate concern ING Real Estate. Along with its affiliates ING Clarion manages $50 billion in assets in the private equity, pubic equity and public debt sectors of the real estate market.