Devonshire REIT Completes $31M Acquisition of 5 Retail Properties in Ohio
WHITEHOUSE, Ohio, Dec. 23, 2013 /PRNewswire/ -- Devonshire REIT, Inc. (http://devreit.com), a private real estate investment trust, announced today the acquisition of five retail properties in Ohio for $31 million.
Monroe Street Square Shopping Center at 5333 Monroe Street, Toledo, Ohio is a 124,904 square foot Hobby Lobby anchored center. Other national retail tenants occupying the center include Sally Beauty Supply, Gamestop, Play It Again Sports and Sprint PCS.
Bed, Bath & Beyond Plaza at 5135 Monroe Street, in Toledo is a 100% leased, 55,139 square foot Bed, Bath & Beyond anchored center with SalonCentric and Edward D. Jones as additional national tenants.
Office Depot Plaza at 5107 Monroe Street is a 100% leased, 45,594 square foot Office Depot anchored center that includes national tenant Aaron Rents and other local tenants.
Pier 1 Imports at 5203 Monroe Street is a 9,860 square foot single-tenant triple-net leased property.
Villages at Waterville Landing in Waterville, Ohio is a 350 acre mixed use development with 125 acres zoned for retail development. Devonshire has acquired the retail portion of the project which currently includes a new, 80,000 square foot Kroger, a Farmers & Merchants State Bank branch and a Speedway fuel center that is under construction. Plans for the remaining undeveloped retail space are being kept confidential at this time.
Goldman Sachs Mortgage Company provided financing for the Monroe Street acquisitions and for the refinancing of the first phase at Franklin Place. The financing package totaled $24 million.
Chris Campbell, CEO and President of Devonshire, said, "We believe in, and are investing in, the future of the Toledo metropolitan area. The acquisitions on Monroe Street and in Waterville prove this by effectively bracketing this area. With the jobs created by the new retailers Devonshire attracts to its centers and those created by the construction and management of those centers, Devonshire is a catalyst for Toledo's reawakening economy - not just a beneficiary."
"We will now have over 555,000 square feet of leasable space in the premier retail corridor of Toledo and can control the look and feel of almost three quarters of a mile of the south side of Monroe Street," added Mike Denman, Devonshire's Executive VP of Real Estate. "With this and the Waterville property, we have the opportunity to create two truly unique destination shopping areas that won't compete with each other."
The properties were purchased from local real estate developers and investors, Tom Helberg and Thomas Schlachter, both of whom expressed their faith in the future of the properties and Devonshire.
Mr. Helberg commented, "The combination of Devonshire's capital base, professional management team and ties to the community make them a good fit to maintain the quality we have always strived for in our properties and even take them to the next level."
"I was reluctant to sell the shopping centers," added Mr. Schlachter. "However, I have been primarily a residential developer in my career and when the opportunity came to team up with Devonshire, it seemed like a natural fit. They have great expertise in the retail and commercial arenas and I will be able to focus on the residential side of the Waterville Landing project."
This information is not an offer to sell or a solicitation of an offer to buy any security or to invest in any fund managed by, or otherwise affiliated with the Devonshire REIT, Inc.. It is for informational purposes only and may not be relied upon in connection with the purchase or sale of any security. Fund investment, if offered, is available only to accredited investors and will be made only upon the acceptance by Devonshire REIT, Inc. of completed subscription documents from qualified prospective investors who have read and fully understand any and all private placement memoranda prior to investment. Statements and certain other information contained herein, which can be identified by the use of forward-looking terminology such as "may," "will," "expect," "continue," "remains," "intend," "aim," "towards," "should," "prospects," "could," "future," "potential," "believes," "plans," "likely," "anticipate," "position," "probable," "committed," "achieve," and "focused," or the negative thereof or other variations thereon or comparable terminology, constitute "forward-looking statements" and should be considered as subject to the many risks and uncertainties that exist in the Company's operations and business environment. Such risks and uncertainties could cause actual results to differ materially from those projected. These uncertainties include, but are not limited to, economic conditions, market demand and pricing, competitive and cost factors, and other risk factors. Devonshire REIT, Inc. is under no obligation to update these forward-looking statements. The Securities and Exchange Commission has not approved or disapproved this investment vehicle or determined whether the information in this document is adequate or accurate. Final refinance and purchase numbers may vary slightly due to fluctuation in interest rates prior to close.
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