Excel Under Contract for $93M Center

SAN DIEGO-Retail Excel Trust Inc. has gone under contract to acquire a center in Stockton called Stockton Park West Place for $92.5 million. The 739,234-square-foot center, of which 597,787 is owned, was built in 2004. It is is anchored by Lowe’s, Target (non-owned), Kohl’s, Sports Authority, JoAnn’s Fabrics, Ross Dress for Less, and Bed, Bath & Beyond. The seller of the property is privately held Bill Levine-Pacific Cos., according to industry sources. The center comprises 13 single-tenant outparcels, including Wells Fargo, Bank of America, Starbucks, Panera, Wendy’s and Sonic Drive-In. It is adjacent to the Interstate 5 Freeway, (100,000 vehicles per day) and is 99% leased.

News of the contract to acquire Stockton Park West Place follows a recent announcement by Excel that it was acquiring $157 million in properties in Alabama, Montana, Maryland, Florida and Virginia .

That $157 million in Excel deals includes two properties that the REIT has acquired for $54.6 million signed purchase contracts for five properties totaling $102 million. The two that the company had acquired at the time were the 375,871-square-foot Vestavia Hills City Center in Birmingham, AL for $33.5 million at a cap rate of 10.3% and the 163,774-square-foot Grant Creek Town Center in Missoula, MT for $21.3 million at a cap rate of 8.5%.

The five properties for which Excel is under contract are the Brandywine Crossing and Rosewick Crossing in Brandywine and La Plata, MD with 197,884 square feet and 116,008 square feet respectively of gross leasable area for $70 million at a blended cap rate of approximately 7.5%; the 78,660-square-foot Shops at Foxwood in Ocala, FL for $14.5 million at a cap rate in excess of 8%; the 47,000-square-foot Settler’s Market at New Town in Williamsburg, VA for $13.5 million at a significant discount to a bank note that was foreclosed on and a 14,550-square-foot Walgreens in Princeton, WV for $4 million at an cap rate of 8%. Since that first GlobeSt.com report, Excel has closed on the Brandywine Crossing and Rosewick Crossing.