Excel announces shopping center acquisitions.SAN DIEGO--(BUSINESS WIRE)--Jan. 7, 1997--Excel Realty Trust Inc. Tuesday announced the purchase of the Valley Fair Mall Valley Fair Mall is the name of at least two shopping centers in the United States, and at least one in Canada:
The company is currently in discussions with an institutional joint venture partner for the redevelopment of the property which may include the addition of a fourth anchor, the development of four to six possible out parcels and the development of four acres of undeveloped land included with the purchase. The center is currently 85 percent occupied and was purchased for approximately $35 million subject to a 7.6 percent fixed rate mortgage of $17.9 million. The purchase price equates to an 11.4 percent cap rate on net operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. of approximately $4.0 million. J.C. Penney, Mervyn's and ZCMI ZCMI Zions Cooperative Mercantile Institution (department store) , a regional department store, lease space as anchors in the mall. Their leases were also purchased as part of the acquisition. President and Chief Executive Officer Gary Sabin Sa·bin , Albert Bruce 1906-1993. American microbiologist and physician who developed a live-virus vaccine against polio (1957), replacing the killed-virus vaccine invented by Jonas Salk. stated, "When we considered the location, the low cost per square foot, the excellent anchor store anchor store n. A large store, such as a department store or supermarket, that is prominently located in a shopping mall to attract customers who are then expected to patronize the other shops in the mall. sales, the attractive capitalization rate Capitalization Rate According to the Appraisal Institute, it is a method used to convert an estimate of a single year's income expectancy into an indication of value in one direct step, by dividing the income estimate by an appropriate rate. and future development potential, we concluded that this property presented a unique investment opportunity with significant upside potential Upside potential The amount by which analysts or investors expect the price of a security may increase. upside potential The potential price or gain that may be expected in a security or in a security average, generally stated as the dollar ." Additionally, the company announced the purchase of Northmall Centre, a 157,000-square-foot power center located in Tucson, Ariz., for $15.1 million. The center was acquired at cost from ERT ERT abbr. estrogen replacement therapy Estrogen replacement therapy (ERT) A treatment in which estrogen is used therapeutically during menopause to alleviate certain symptoms such as hot flashes. Development Corp., the company's development affiliate, which originally funded the development of the center. The center is currently 100 percent occupied and anchor tenants include Stein Mart, Cost Plus, Home Express and Blockbuster Music Plus. The center will add approximately $1.5 million in net operating income to the company. The company had previously purchased two out parcels on this property, subject to ground leases with Ruby Tuesday's Inc. and Brinker Restaurant Corp. (Chili's Bar and Grill) in the third quarter of 1996. The company also purchased two additional parcels of vacant land adjacent to existing shopping centers currently owned by the company. The land was next to Kinston Crossing in Kinston, N.C., and Crossroads Shopping Center in Statesville, N.C. These parcels were purchased for potential expansion of each of these centers. In addition, the company announced the sale of a single tenant property located in Tucson, originally leased to Osco Drugs. The sale price was approximately $1.25 million. The company's downREIT Excel Realty Partners L.P. (ERP (Enterprise Resource Planning) An integrated information system that serves all departments within an enterprise. Evolving out of the manufacturing industry, ERP implies the use of packaged software rather than proprietary software written by or for one customer. ), announced the acquisition of a 72,500-square-foot shopping center located in Winston-Salem, N.C., for $8.1 million. The new center, anchored by Office Max, Michaels and Blockbuster Music is 95 percent occupied and generates approximately $835,000 in net operating income. It was purchased for a combination of $6.25 million in debt, $1.5 million in cash and 17,143 operating partnership units. The center will be managed by Excel's Raleigh-Durham regional office. ERP also announced the acquisition of 14.75 acres next to its Kimball Crossing shopping center in Kimball, Tenn., for the development of a new Wal-Mart Supercenter. The existing Wal-Mart will be replaced with a new 182,700-square-foot building to accommodate the Wal-Mart Supercenter. The new expanded center will integrate both the existing center and the new land purchased. It is estimated that the net operating income from the new expanded center will be approximately $1.65 million. The company's development affiliate, ERT Development Corp., also acquired through a participating loan/joint venture agreement a 50 percent interest in three shopping center properties under development in Arizona totaling approximately 1.5 million square feet. Excel Realty Trust is an operating real estate company which owns and manages community and neighborhood shopping centers and single tenant properties leased primarily to national retail tenants. The company currently operates more than 8 million square feet of gross leasable area Gross leasable area (GLA) in the retail development industry is a term applied to shopping malls, lifestyle centers, outlet malls and other retail centers to indicate the amount of floor space available to be rented. with an occupancy of 98 percent. CONTACT: Excel Realty Trust Inc., San Diego Graham R. Bullick, 619/485-9400, ext. 203 |
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