Daniel Taub, DLC's EVP and COO, said in a statement that the company bought the 9-year-old center, located in the Mount Washington neighborhood, with CMBS assistance. "Three other buyers were unable to complete the complex conditions to assume the existing mortgage," he said in the statement. The Bigg's market occupies more than 50% of the center. A sale price was not disclosed. In comparison, sources say the 113,146-sf Prospect Square at 9700 Colerain Ave., a Kroger-anchored center, sold for $144 per sf, or more than $16 million. New Plan Excel Realty Plus bought Skytop in November 2004 from Jeffrey R. Anderson Real Estate for $20.3 million.
The disruption in the capital markets have allowed companies with available money to buy up properties where those that need loans have come up short, said Adam Ifshin, DLC's president and CEO. "(We) are actively acquiring both existing assets (stable and in transition) as well as both construction loan and permanent loan distressed debt secured by retail properties nationwide," he said in the statement. Ifshin did not return a call before this story was published.
Taub said in the statement that the company trusted the Skytop purchase because it is the sole grocery-anchored center in the immediate trade area, which has an average household income of $84,000 per year. "The barriers to entry are high, and Biggs recently spent several million dollars renovating the store," he said. The grocer is a division of Eden Prairie, MN-based Supervalu Inc.
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