ARLINGTON, TX- A partnership led by Boston-based AEW Capital Management and M&J Wilkow of Chicago has provided joint venture equity, assumed the existing debt and formed a new partnership with existing owners The Retail Connection and Cheney Mathes for possession of the 737,000-square-foot Arlington Highlands. The JV was formed on behalf of AEW Core Property Trust (US) and will be the majority stakeholder.
The Retail Connection’s Property Management Division, Connected Management Services, will continue to oversee property management and marketing, while TRC’s brokerage group will continue to provide leasing and advisory services. Arlington Highlands is located at the northeast corner of Interstate 20 and Matlock Road.
“We are pleased to be a major stakeholder and partner in this exceptional project, which has a diverse base of high-quality national tenants, a carefully crafted site plan, high-quality construction, and is a family-oriented center with a true sense of place,” says George Fryer, director at AEW, in a press release. “The recapitalization will allow the ownership to continue to enhance the existing shopping center and provide additional capital for future improvements,” he said.
“Arlington Highlands provides us with a rare opportunity to participate in a vitally important, regionally dominant shopping center in a top-four MSA at an excellent time within the economic and consumer cycle,” says Zoran Urosevic, vice president, M&J Wilkow Ltd. in the same release. “In addition, the unmatched track record of tenant renewals demonstrates the ability to retain high-quality credit tenants. Arlington Highlands is very popular with national and regional retailers, and the tenant testimonials illustrate proof of consumer demand and the importance of this location.”
Arlington Highlands was completed in 2007 by Dallas-based The Retail Connection LP (TRC)| Connected Development Services and Cheney Mathes Ltd. The open-air shopping center is currently 95% leased and has a collection of prominent national and regional retailers including Bed Bath & Beyond, PetSmart, The Container Store, Ann Taylor Loft, White House Black Market, P.F. Chang’s and Ethan Allen. Arlington Highlands was the first major development by The Retail Connection | Connected Development Services in 2005, about a year after Steve Lieberman and Alan Shor launched the company.
“The recapitalization of Arlington Highlands is a huge plus for everyone involved in this partnership,” says Eric Zimmermann, managing director of Eastdil Secured in a prepared statement. Eastill Secured is overseeing the recapitalization. “This is a rare project with the perfect elements to ensure a very productive property for the partners, retailers and consumers,” Zimmerman adds.