Equity One Inc., the Miami shopping-center owner, developer and operator, has just acquired five properties in the New York metropolitan area and is in the process of acquiring a sixth property in Bethesda, Md., for a total investment of $302.5 million.
“These acquisitions are consistent with our strategy of owning retail properties in urban markets with visible growth through contractual rent increases, below-market rents and redevelopment opportunities,” said Jeff Olson, CEO of Equity One.
Most recently, Equity One entered into a contract with Capital Properties to acquire the Westwood Complex, a 22-acre property located in Bethesda, for $140 million, with an anticipated closing prior to January 2014. The transaction is initially structured as a $95 million mortgage loan, which has already been funded.
The site consists of 214,767 square feet of retail space, a 211,020-square-foot apartment building and a 62-unit assisted-living facility. Opened in 1959, the main retail center within the Westwood Complex is anchored by Giant Food, which has a lease due to expire in 2019, with no term remaining. The apartment building is leased to a division of Montgomery County, Md., and is subject to a purchase option in 2017, which is expected to be exercised, according to a statement from Equity One. The assisted-living facility is leased to Manor Care Health Services through 2015, with no term remaining.
The company also closed on two acquisitions in New York, Clocktower Plaza and 1225 Second Avenue. Clocktower Plaza is a 78,820-square-foot shopping center at 92-10 Atlantic Avenue in the Ozone Park neighborhood of Queens. Winstanley Enterprises sold it to Equity One for $56 million. The shopping center is anchored by a Pathmark grocery store and is 100 percent leased. The property is situated on seven acres of land with extra parking space, which is expected to provide development and expansion opportunities sometime in the future, according to Equity One.
The property at 1225 Second Avenue is an 18,474-square-foot retail condominium between 64th and 65th Streets on the Upper East Side of Manhattan. It is anchored by a CVS and a 7-11. The property was purchased for $27.5 million and is encumbered by a $16.7 million mortgage. Together with Clocktower, this property marks the company’s sixth acquisition in New York City.
Equity One also finalized the acquisition of a Heyman Properties portfolio of three properties in Connecticut: Darinor Plaza at 500 Connecticut Avenue in Norwalk, Post Road Plaza at 400 Boston Post Road in Darien and Compo Acres at 380-400 Post Road in East Westport.
Darinor Plaza is a 152,025-square-foot shopping center anchored by a Kohl’s, an Old Navy and a Party City. The property was purchased for $36 million and is encumbered by an $18.8 million mortgage. The 42,819-square-foot Compo Acres was purchased for $30.3 million. Post Road Plaza, a 20,067-square-foot shopping center, was purchased for $12.7 million. The malls were all built in 1978 and are 100 percent leased.