Doerken Buys 343,000-SF Retail Portfolio

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SACRAMENTO-Doerken Properties has added three Sacramento-area retail centers to its core portfolio. The Santa Monica, CA-based shopping center investor used a financing package that covered 95% of the cost to acquire and reposition the 343,170-sf package, which was acquired for $64.4 million. The seller was Kimco Realty Corp. Acquisition financing was arranged by Los Angeles-based George Smith Partners.

In the largest transaction, Doerken acquired Commonwealth Square, a 141,310-sf neighborhood shopping center on a 14-acre lot in Folsom, CA. The property is located at 703 East Bidwell Street and is anchored by Raley’s Supermarket. Additional tenants include Hollywood Video, Century 21, Mail Boxes Etc., Papa Murphy’s, My Gym, Jiffy Lube and H&R Block. The property is 97.5% occupied. Financing for the acquisition totaled $37.1 million, including a $33.2-million, five-year, non-recourse, 85% loan-to-cost, interest-only senior loan at 140 basis points over the 10-year Treasury, and additional mezzanine financing.

In one of the other transactions, Doerken acquired Kmart Center, a five building, 132,630-sf Kmart and Big Lots anchored retail center on a 10.4-acre lot at 5200 Stockton Blvd. in Sacramento. Other tenants include Aaron Rentals, Burger King, Round Table and RadioShack. The center was 100% leased at the time of financing. Financing included a five-year, non-recourse, 85% LTC interest-only loan priced at 140 basis points over the five-year Treasury.

In the third transaction, Doerken acquired Glenbrook Shopping Center, a 69,230-sf, Big Lots-anchored retail center on 6.8 acres at 8700 La Riviera Dr. in Sacramento. The neighborhood retail center is located adjacent to Watt Avenue and Interstate 50. Tenants include Round Table Pizza, Jack in the Box and Subway. The center was 100%leased to 19 tenants at the time of financing. The $11.7-million financing packahge includes a $10.5-million, 10-year, 85% LTC non-recourse, interest-only loan at 135 basis points over the 10-year Treasury, and additional mezzanine financing.

George Smith Partners principal Gary Mozer arranged the financings with VPs Steven Orchard and Joshua Roseman.