Weingarten Buys Seven NC Centers for Estimated $100M

Weingarten president/CEO Drew Alexander didn't disclose the individual or aggregate purchase prices in a prepared statement. But based on his total $141.7 million investment on 1.6 million sf of retail this year alone, according to the statement, the estimated acquisition price Weingarten paid Raleigh, NC-based Bob Hughes and Associates comes to about $88.56 per sf or an aggregate $101.84 million.

Tracy Pursell of Weingarten's corporate staff tells GlobeSt.com the REIT never discloses acquisition prices. The company also didn't disclose the properties' ages and their average asking rents.

Nevertheless, the $101 million transaction is easily the largest retail deal of its kind completed this year in North Carolina or Georgia, according to GlobeSt.com research. The properties are all 98% leased, according to Weingarten's statement. Alexander says the centers are yielding an initial return of 9.9%.

Atlanta-based Wachovia Securities was Bob Hughes' financial adviser on the the deal. The Weingarten statement says a DownREIT structure was used in completing the deal. Weingarten issued an undisclosed number of DownREIT operating partnership units that are convertible into the company's common shares.

The acquired North Carolina properties in the Raleigh-Durham area are Avant Ferry shopping center, 111,600 sf, anchored by Food Lion and the United States Postal Service; Capital Square, 156,600 sf, anchors Food Lion and Mars Music; High House, 90,000 sf, anchors Harris Teeter and Ace Hardware; Mineral Springs, 58,400 sf, anchors Food Lion and Eckerd; Northwoods, 77,800 sf, anchors Food Lion and Eckerd; Stonehenge Market Place, 188,300 sf, anchors Harris Teeter and Stein Mart; and Six Forks, 468,100 sf, anchors Food Lion, Home Depot, Eckerd, Borders Books, Bed Bath & Beyond and Kmart.

In Plano, TX, Weingarten paid an undisclosed seller an estimated $16.8 million for Pitman Corners, a 189,800-sf shopping center anchored by Albertsons, Tuesday and McDonalds.