By: Paul Dionne | Vizzda
In a pair of consecutive sales, a joint venture between San Diego-based Midtown Niki Group (MNG) and the locally-based Pederson Group purchased four single-tenant and two multi-tenant retail buildings for a combined $7.92m or $187.60 per square foot. The single-tenant portion was acquired with $5.712m down and the multi-tenant portion was acquired with $300k down, both parcels were encumbered under respective $1.62m seller-carry notes for a total cash tender of $6.012m and total new debt of $3.24m.
The Bella Angela shopping center totals 42,216 ft2 in six 1-story buildings built from 1999 to 2001 on a 7.02 acre site east of the northeast corner of Bell Road and SR-51 in Phoenix. There are two multi-tenant buildings demised into twelve spaces totaling 18,715 ft2. The single tenant spaces are comprised of a freestanding Walgreens Pharmacy at 14,060 ft2, two pads occupied by Jack in the Box and KFC at 2,660 and 2,340 ft2, respectively, and a full service restaurant space occupied by a Village Inn at 4,441 ft2.
The Walgreens operates under a ground lease that is slated to expire on October 14th, 2048. The Jack-In-The-Box space is leased until April 11th, 2019 and the Village Inn space is leased until October 25th, 2019; both Jack-In-The-Box and Village Inn have two 5-year options to extend their lease. The terms of the KFC lease were not publicly disclosed, nor were the terms of a cell phone tower lease encumbering the property. The multi-tenant spaces with publicly-recorded lease terms operate under leases that expire between October 31st, 2014 and January 16th, 2017.
The deal was structured such that the multi-tenant properties were conveyed to a special purpose entity with both MNG and Pederson as members and the single-tenant properties were conveyed to that same special purpose entity and three additional MNG affiliates as tenants-in-common. The stake in the single-tenant properties attributable to the joint venture including MNG and Pederson is 8% with the three MNG affiliates taking down the remaining 92% as undivided 45%, 36% and 11% interests. Pederson will act as property manager for the shopping center, while all of the financing materials are in care of Midtown Niki Group.
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