Regency Realty Successfully Preleasing Retail Development

HILLSBORO, OR-Regency Realty Corp. is successfully preleasing a planned 46,500-sf retail project here on property near 185th and Sunset Highway. H. Craig Ramey, the retail REIT’s senior vice president of Northwest investment, has so far declined to speak with GlobeSt.com about the project, but real estate sources say 40,000 sf of has been leased to two unnamed tenants, one a 30,000-sf user and the other a 10,000-sf user. A 6,500-sf building is reportedly still available.

Regency purchased the property–2800 NW 188th Ave.–in December for $3.8 million, according to Oregon Title Insurance Co. It was previously slated to be a full-service Marriott hotel. The seller, Atlanta-Hillsboro Lodging LLC, paid $2.7 million for the land in May 1998, according to the title company. Hotel broker Ed Dundon represented Atlanta-Hillsboro Lodging LLC. Skip Stanton represented Regency. Neither would comment for this story.

Headquartered in Jacksonville, Regency currently owns and operates 235 properties in 22 states, accounting for over 27 million sf of prime retail space. Founded in 1963, Regency has been a public company since 1993. Security Capital US Realty is the firm’s majority shareholder. Earlier this month, Regency informed shareholders it will begin rolling out its plan this month to enhance the brand in part by the introduction of a new name and a new logo. The company will soon be known as Regency Centers Corp.

“The name change will have no impact on existing property names and, therefore, will not include expensive property pylon sign replacements, but will include, as an example, the placement of effective and inexpensive property welcome and thank you signs with our new brand identity,” explains chairman and CEO Martin Stein in his letter to shareholders. “In fact, the total remaining cost of this initiative is less than $1 million.”

For the nine months ended Sept. 30, Regency’s revenues increased 23% to $260.1 million, while net income rose 1% to $60.9 million. Regency’s stock price closed Friday at $23.06, down 12 cents from Thursday’s close and $1 off its 52-week high. The company’s 52-week low is $18.31.