SALT LAKE CITY—BIG Shopping Centers USA and original developer Foursquare Properties have entered into a joint venture agreement to invest in the retail portion of Jordan Landing, a 500-acre, master-planned, mixed-use community in southwest suburban Salt Lake City.

In a deal that closed August 27, the Beverly Hills-based equity partner secured a 49% interest in The Plaza at Jordan Landing, the remaining portion of the 1.8 million-square foot Jordan Landing Shopping Center in West Jordan. In November 2012, BIG USA acquired an interest in the southern-most portion of the center. No additional terms were disclosed.

“This acquisition marks the addition of another high-quality property to BIG USA's retail portfolio – our first in Utah and our largest acquisition to date,” explains Stanley McElroy president, BIG Shopping Centers USA. “With our long-term hold strategy, it's imperative that we acquire properties with solid real estate fundamentals that drive return-on-investment levels that support such a strategy.  Jordan Landing meets these credentials.”

“Our shared interest in a long term hold strategy, combined with BIG's expertise and experience in the shopping center industry makes BIG an ideal partner in a quality asset like this,” said Erich Grosse, vice president, Foursquare Properties.

HFF secured a 10-year, fixed-rate loan through AIG Asset Management, LLC.  The firm previously facilitated the financing and recapitalization of the property in 2001 and 2004.

This month's acquisition included a 49% ownership stake in The Plaza at Jordan Landing, the 676,000-square foot lifestyle and power center sectors situated north of Lowe's Home Improvement and Sears Grand and extending along Plaza Center Drive to Jordan Landing Boulevard.  Included in this transaction are Cinemark, Kohls, Barnes & Noble, Nike Factory Outlet, Ross Dress for Less, TJMaxx, Bed Bath & Beyond and 24-Hour Fitness, along with 50+ additional retailers, service providers and restaurants.

In 2012, BIG USA's original investment in Jordan Landing included two power centers totaling approximately 350,000 square feet to the west of Walmart, Sam's Club, Sears and Lowe's Home Improvement. The transaction included Best Buy, PetSmart, Michaels, Sports Chalet and Rue 21; the portion of the center that stretches from Campus View Drive to Jordan Landing Boulevard along W 7800 South.  A 10,000-square foot, multi-tenant outparcel located is currently planned along Jordan Landing Boulevard.

Foursquare Properties maintains the remaining 51% ownership stake in the shopping center that is currently 98% leased. Walmart, Sam's Club, Sears Grand, Lowe's Home Improvement and Target were not included in the transactions.

“Salt Lake City is becoming symbiotic with Northern California with its superior environment and quality of life along with its pride of education – particularly noteworthy given its significantly lower cost of living,” continues McElroy.  In addition to the staple industries of mining and natural resources, information technology and financial services are also growing with new employers including Goldman Sachs, NSA, Micron Technologies and Adobe enjoying the business friendly climate.

“Our equity partnership with Foursquare Properties will capitalize on obvious synergies between our teams,” concludes McElroy.  “BIG brings a wealth of retail experience while Foursquare has developed and maintained a best-in-class property with a vested interest in the community.”  The acquisition of the Salt Lake City retail center increases BIG USA's portfolio to approximately six million square feet with 28 retail centers owned throughout the United States.

Established in 1972, Foursquare Properties has developed several regional and local shopping centers in the western United States.

Established in 1994, BIG Shopping Centers is an international owner, operator and developer of shopping centers in Israel, United States, India and Serbia.  BIG USA, a subsidiary of BIG Shopping Centers headquartered in Beverly Hills, provides an equity partner for leading US shopping center operators to acquire individual as well as portfolios of quality shopping centers for long-term cash flow. BIG USA primarily focuses on acquiring grocery-anchored, neighborhood and power centers.