Westwood Financial Acquires AZ, GA Retail Centers
- May 22, 2018
Westwood Financial has acquired two Sprouts-anchored shopping centers in two separate transactions, totaling $66.2 million. The first was Boardwalk at Andersen Springs in Chandler, Ariz. and the second was Decatur Crossing in Decatur, Ga.
Boardwalk at Andersen Springs is located at 1969 W. Ray Road and is the home of Sprouts Farmers Market’s flagship store that opened in 2005. The store is currently undergoing $1 million in renovations and signed for a 10-year lease renewal. The property is 97 percent occupied by several other retailers, including Super Cleaners, Pet Planet, Ambrosia Floral Boutique, Third Base Restaurant, Coffee Rush and European Wax Center. The purchase was sourced off-market and financed by a senior loan from Nationwide Life Insurance Co. Debt financing was arranged by HFF.
Decatur Crossing is situated at 2551 Blackmon Drive and was delivered in 2017 by Fuqua. The 81,900-square-foot asset is currently 100 percent occupied by tenants such as Zoe’s Kitchen, Pacific Dental, SunTrust Bank, Banfield Pet Hospital and Dunkin Donuts. The acquisition was financed by a senior loan from Unum Group, also arranged by HFF.
“Our recent transactional activity highlights our commitment to the main pillars of our investment thesis,” said Joe Dykstra, CEO of Westwood Financial, in a prepared statement. “First, we seek to align Westwood with best-of-breed operators that are gaining market share, such as Sprouts Farmers Market. Second, we target locations with high-quality underlying real estate that will appreciate over the long term—both the Decatur and Chandler locations have tremendous demographics and support this thesis.”
The company is also set to purchase three separate retail assets in the Chicago trade area, which are valued at more than $27 million.
“Our pending Chicago acquisitions further support our transactional strategy of owning high-quality underlying real estate with strong demographic profiles,” added Dykstra, in prepared remarks.
Last August, the firm secured $171 million in financing for a portfolio comprising 13 multi-tenant retail centers located throughout Arizona, California, Florida, Georgia, Illinois, North Carolina and Texas. Once again, HFF placed a $94 million fixed-rate portfolio loan with Nationwide Life Insurance Co., which was used for refinancing and new acquisitions. In addition to that, HFF also arranged a $77 million fixed-rate portfolio loan with a correspondent life insurance company to refinance existing debt.
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