Deals

VESTAR AND AEW FORM JOINT VENTURE TO ACQUIRE TEMPE MARKETPLACE

architectural photography

Vestar, one of the largest privately held retail real estate companies in the western United States, and AEW Capital Management (AEW) have partnered to acquire Tempe Marketplace for $367 million.  Vestar previously owned the 1.3 million-square-foot, open-air retail center with Rockwood Capital, LLC (“Rockwood”) which is exiting its investment after a five year hold.  AEW acquired the property on behalf of the AEW Core Property Trust.

architectural photography

architectural photography

“We have a great long-standing relationship with AEW and are excited that their vision for Tempe Marketplace matches ours,” said Rick Kuhle, Vestar Chairman and CEO. “Rockwood has been an exemplary capital partner for us. We look forward to working with them on future ventures.”

“We are excited about the investment as we believe the center will continue to benefit from the nearby Arizona State University campus, as well as State Farm’s move of approximately 7,000 professionals to a property that is adjacent to Tempe Marketplace,” said Dan Bradley, Senior Portfolio Manager for AEW Core Property Trust. “We are also thrilled to partner with Vestar who we believe is a best-in- class operator.”

“Rockwood and Vestar have enjoyed an outstanding relationship, partnering on Tempe Marketplace and three additional joint ventures over the past several years,” said Joel Mayer, Rockwood Managing Director.  “We will continue to pursue new opportunities with Vestar in the future.”

Vestar opened Tempe Marketplace in 2007 and Rockwood Capital joined as a joint venture partner in 2010. The center offers strategically integrated shopping, dining and entertainment in a festive, pedestrian-oriented village town center environment.  Tempe Marketplace is fully occupied and recently welcomed several new tenants including: F21 red (Forever 21’s newest concept store), H&M and Nordstrom Rack.

“Vestar continues to be committed to the success of Tempe Marketplace with AEW as our partner,” said David Larcher, President of Vestar.  “We will continue to focus our efforts on increasing the productivity of the center and providing an exceptional customer experience.”

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Commercial Real EstateDealsRecent Deals

Vestar and UBS Global Asset Management Acquire Orchard Town Center in Denver For $123.5 Million

Orchard Town Center

Orchard Town Center

Vestar, in a joint venture with a fund advised by UBS Global Asset Management, announced today that it has acquired Orchard Town Center, a 914,000-square-foot open-air regional retail center located in Westminster, Colorado for $123.5 million in an all cash transaction.  This marks Vestar’s first acquisition in the Denver market. 

The acquisition of Orchard Town Center is the firm’s second investment in the past four months after the September acquisition of the 855,728-square-foot Village of Orange super-regional mall in Orange, Calif.  In the past 30 months, Vestar has acquired retail centers totaling more than $1 billion.

“Orchard Town Center provides us with a value-add investment opportunity in a premier region of the West,” said Rick Kuhle, President of Vestar.  “Our goal is to significantly upgrade and rebrand the center with new amenities while bringing in new retailers.”

Kuhle continued by saying that Denver is one of the premier retail real estate markets in the U.S. with a strong demographic mix and stable population growth.

“We are very bullish about these types of value-add investment opportunities and are aggressively seeking more properties like it in Denver and throughout the West,” said David Larcher, Executive Vice President of Vestar.

Conveniently located on the northwest corner of Interstate 25 and 144th Avenue, Orchard Town Center offers guests a charming town square atmosphere with tree-lined pathways leading to anchor tenants, specialty shops, restaurants and entertainment venues. The center is 89 percent leased and  anchored by JCPenney, SuperTarget, Macy’s, AMC Theatres REI and Lifetime Fitness.  Orchard Town Center also features other nationally-recognized tenants including Forever 21, Chico’s, Victoria’s Secret, Eddie Bauer, Old Navy, ULTA Beauty and Ross Dress for Less. 

The seller, Forest City Enterprises, Inc., (NYSE: FCEA and FCEB), was represented by Mike Winn and Tim Richey of Cushman & Wakefield.  Vestar represented itself in the transaction.

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