SCI Buys NJ Power Center for $21M

The latest transaction is actually the second of a two-part deal between the seller and the Los Angeles-based buyer. As reported by GlobeSt.com, SCI bought the companion ITC Crossing South, closing that acquisition in October. The larger ITC South (366,000 sf) traded for a reported $64.3 million, or about $176 per sf.

"During the first sale, we negotiated a closing structure so that the second portion of the property would close in 2007, once certain thresholds were met," says Richard Walter, who brokered the deal with Faris Lee colleague Donald MacLellan. "This included very comprehensive agreements covering adjacent infrastructure issues."

"There were construction problems that were uncovered during due diligence that involved the movement of retaining walls and drainage system cracks due to original construction, as well as wetlands problems near the property," MacLellan says. "We worked with SCI and their consultants to overcome the challenges. SCI now owns two large retail assets in a growing market with high barriers to entry as there are scarce opportunities for other retail development."

SCI, of course, focuses primarily on TIC deals, and this was a TIC acquisition, as was the previous ITC Crossing North deal. There were also property tax reimbursement issues that were resolved prior to the closing of the earlier ITC Crossing North, the brokers report. The two-part sale had been in the works since late 2005.

Built in 2003 and situated on 18.4 acres, ITC Crossing North is part of the larger 700,000-sf ITC Crossing Shopping Center, which derives its name from the surrounding International Trade Center business park. The two-building ITC Crossing North was 100% occupied at the time of sale, with a roster that includes such tenants as Sam's Club, Staples, Subway and Tuesday Morning, among others.