Philadelphia-based Lubert-Adler Partners has exited an equity and debt investment through the sale of two suburban shopping centres – one just outside Atlanta, Georgia and one in Lexington, Kentucky.
The combined sales price for both centres was USD336 million.
Forum Peachtree Parkway, a 500,000 square foot lifestyle centre just outside Atlanta in Norcross, GA, was sold to AEW for USD150 million.
The majority of space at Hamburg Pavilion, a power/lifestyle centre in Lexington, KY with over one million square feet of retail space, sold for USD186 million to Starwood Capital.
Both centres were developed by Thomas Enterprises. Lubert-Adler made equity and debt investments in the centres during 2008, as the economic downturn led to retailer bankruptcies and resulting retail space vacancies. Lubert-Adler invested in a third centre at that time, also developed by Thomas - the 265,000 SF Forum Carlsbad in Carlsbad, California - which was acquired in 2011 by TIAA-CREF for approximately USD180 million.
“Lubert-Adler provided timely equity and debt to re-lease and stabilize each property,” says Dean Adler, CEO and co-founder, Lubert-Adler Partners. “All three of these retail centres have made a comeback with the economic recovery, but they also have potential for the new owners, given the strong demand and relative lack of retail supply in their submarkets.
“As with our investments in multifamily, mixed-use, and other property types, our retail strategy focuses on deploying capital to create strong cash-flowing rental assets with experienced operators who possess superior knowledge and local market expertise.”