retail property purchased.
NEW YORK CITY-The fund O’Connor/Wafra Retail Partners created by O’Connor Capital Partners and Wafra Investment Advisory Group purchased two retail properties for an undisclosed amount, according to president and COO of O’Connor Capital Partners, Joel Bayer. While unable to release specific pricing details due to confidentiality agreements, he was able to explain a little bit about the strategy behind each acquisition.
Located in Little Rock, Arkansas, the Promenade at Chenal is a 237,066-square-foot open-air shopping center that “was the most productive” in the state, says Bayer. “We bought a 90% interest in the property from the original developer because we think the property is well-positioned and has a lot of upside.” He adds that it holds the only in-state locations of stores like Nike, Anthropologie and the Apple store, and it is currently 80% leased. The JV will own a 90% stake in the retail property, which was originally developed by Red Development. Bayer says that the developer will maintain a 10% interest and will stay on to manage and lease the property.
In Pittsburgh, O’Connor and Wafra, on behalf of O’Connor/RealVest Retail Holding Company LLC have taken 100% ownership of Phase II of Settlers Ridge, having bought the adjacent Phase I in October 2010. “We wanted to expand into Phase II because the thought there was synergy between owning Phase I and Phase II,” highlights Bayer. The new acquisition is fully leased. When asked about the decision to buy up retail property in this area, Bayer explains, “We think Pittsburgh is an up and coming market. It reinvented itself form an old steel town to something high tech. It’s what we like about it.”
At press time, Bayer did not have rental rates or other figures accessible.