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Monday, 14 September 2015

UBS Pays $132.8Mln For Laurel, Md., Retail Property

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Commercial Real Estate Direct Staff Report

UBS Realty Investors has paid $132.8 million, or about $343/sf, for the Towne Centre at Laurel, a 387,041-square-foot retail property in the Washington, D.C., suburb of Laurel, Md.

The investment manager purchased the property, at 14702 Baltimore Ave., from a venture of Greenberg Gibbons, Somera Capital Management and AEW Capital Management, which was represented by CBRE.

The sales price results in a capitalization rate of 5.93 percent, based on the $7.9 million of net operating income the property is projected to generate next year. Currently, it is generating less than that, given that it opened earlier this year and is 85 percent occupied. NOI is projected to climb to $8.8 million by 2017 as it stabilizes. At that level, the property's sales price results in a 6.6 percent cap rate.

The retail market in Washington's Maryland suburbs is expected to see an increase in occupancy over the next four years to 93.9 percent from the 92 percent posted in the second quarter, according to Reis Inc. While 673,000 sf of space will be added during that time, 1.4 million sf will be absorbed.

Towne Centre is at the site of the former Laurel Mall, an enclosed shopping center that AEW had purchased with Somera in 2006 for $31 million.

The property had served as collateral for $55 million of financing that was provided by a group of banks led by the former Fleet National Bank. The group took over the property when the loan defaulted and JLL was named receiver.

AEW and Somera planned to redevelop the property, but the market's downturn stalled their efforts. In 2011, they jump-started that plan and brought in Greenberg Gibbons, an Owings Mills, Md., retail developer, as a partner.

The following year, the ailing mall was demolished. Its redevelopment cost $130 million, which was funded with $90.8 million of construction financing from M&T Bank and bond financing issued by the city of Laurel.

The property, two miles from Interstate 95, is occupied by tenants that include Burlington Coat Factory, with 70,000 sf; Regal Cinemas, with 51,345 sf; Harris Teeter, with 48,756 sf; Sports Authority, with 33,533 sf; Party City, with 13,124 sf; Old Navy, with 12,704 sf, and ULTA Salon, Cosmestics & Fragrance Inc., with 10,413 sf.

Comments? E-mail Josh Mrozinski or call him at (267) 247-0112, Ext. 213.



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Additional Info

  • Syndicate to Realpoint: No
  • Cities: Washington
  • States: District of Columbia
  • Sector: Retail
  • Subject: Property Acquisitions (ACQ)
  • Company: Urban Shopping Centers
  • Valuation: Between $100 million and $150 million
  • Private: No
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Data Digest

 

CMBS DELINQUENCY VOLUME

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CMBS SPECIAL SERVICING VOLUME

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Top Bookrunners Domestic, Private-Label CMBS - 2017
Investment Bank #Deals Vol$mln MktShr%
Goldman Sachs 17.59 11,819.34 13.68
JPMorgan Securities 14.52 10,968.11 12.70
Citigroup 12.04 10,012.71 11.59
Wells Fargo Securities 14.02 9,936.06 11.50
Deutsche Bank 12.55 9,879.74 11.44

 

RCA CPPI

 

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CMBS 2.0 Spreads

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Top CMBS Loan Contributors - 2017
Lender #Loans Vol$mln MktShr%
Goldman Sachs 146.89 11,719.34 13.63
JPMorgan Chase Bank 117.68 10,114.14 11.76
Deutsche Bank 198.48 9,689.97 11.27
Morgan Stanley 166.18 8,539.78 9.93
Citigroup 199.05 8,088.24 9.41

 

 

 

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