CA Firm Buys Water Tower Place in Record Deal
The purchaser was a California-based family office with extensive experience acquiring and managing trophy quality, grocery anchored shopping centers throughout the United States, Pegasus Investments states.
DES MOINES, IA—In what brokers say is the largest shopping center transaction in the history of the city, Water Tower Place in Des Moines, IA has been acquired a California-based firm for a reported price of $51.2 million.
Los Angeles-based Pegasus Investments Real Estate Advisory Inc. reports that the fully-leased more than 270,000-square-foot shopping center was sold by a locally based private partnership, which had owned the property since it was built in 1994. The firm exclusively retained Pegasus Investments to conduct the sale of the property. The Pegasus team responsible for the sale of Water Tower Place was led by David Chasin, Kevin Shelburn, Bradley Kritzer, Daylin Ackerman, Tony Veiller and Stephen Apfel.
Pegasus says the deal, which several published reports state was valued at approximately $51.2 million, also marked the second largest sale in the history of the State of Iowa. The purchaser was a California-based family office with extensive experience acquiring and managing trophy quality, grocery anchored shopping centers throughout the United States, Pegasus Investments states.
The purchaser acquired Water Tower Place on an all cash basis and plans to add it to its portfolio of other high-quality shopping centers.
Anchored by the only Whole Foods Market in the state, WTP was 100% leased at the time of sale. The property’s tenant roster includes: Ross, Marshall’s, ULTA, Best Buy, Cost Plus World Market, Five Below, buybuy Baby, Office Depot and Guitar Center.
“There are a few markets we consider to be ‘sleeper’ markets. Basically, these are markets that should be on every national investor’s radar due to their phenomenal demographic, employment and real estate fundamentals but for some reason or another have yet to make the mainstream lists. Without a doubt, Des Moines is near the top of that list,” says Chasin, managing director of Pegasus Investments. He notes that Des Moines is the fastest growing metro in the Midwest, has the second lowest unemployment rate in the US and has experienced 42% growth in its population since 2000.
“The sale of WTP also underscores a recurring trend of west coast capital pursuing institutional quality shopping centers in the Midwest. “Properties like Water Tower Place truly come around once in a generation,” adds Shelburn, SVP at Pegasus Investments. “This was the first time the property had ever traded hands in its 25-year history, and likely won’t be offered for sale again in the foreseeable future. The buyer recognized this extremely rare acquisition opportunity and paid a price reflective of its stature as the most dominant center in the market.”