Iconic apartment developer and founder of Post Properties John Williams is buying a grocery cart-full of shopping center properties from a fund operated by Hines Interests.
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Williams' New Market Properties, a division of his Preferred Apartment Communities, is under contract to buy eight retail properties from Hines REIT for $209.1M, or $198/SF, including three prominent suburban Atlanta centers. The deal is expected to close in August. The Atlanta properties include:
- Sandy Plains Exchange, a 73k SF center more than 98% leased and anchored by Publix Super Markets, whose lease expires in 2019, and pays some $400k/year in rents.
- Cherokee Plaza (below), a 103k SF shopping center that's fully leased and anchored by Kroger, which recently renewed through 2032 and pays an annual rent of $1.4M.
- Thompson Bridge Commons, a 93k SF Kroger-anchored center that is more than 97% leased. Kroger just renewed there until 2028 with an initial rent of $800k/year.
Hines Interests
Other properties in the portfolio include the BJ's Wholesale Club-anchored Shoppes of Parkland, a 146k SF shopping center on more than 20 acres on the outskirts of Miami; the Publix-anchored University Palms, a 99k SF shopping center just outside of Orlando; Heritage Station, a 73k SF Harris Teeter-anchored property in Wake Forest, NC; Oak Park Village, a 64k SF fully leased center anchored by HEB Grocery Co in San Antonio; and Champions Village (below), a 404k SF super regional shopping center in Houston that's more than 85% leased and anchored by both Randall's Food Markets and Stein Mart.
Courtesy of Champions Village
Randalls grocery in Champions Village, Houston
According to information supplied in an SEC filing, Preferred Apartment Communities will spend some $900k over the next two years improving the properties. And the company is in the process of arranging 10-year first mortgage loans on each of the properties (excluding Champions Village) that could total nearly $98M and will be non-recourse with a fixed interest rate of 3.45%.