Sycamore Commons Sells for $49M to Inland and Costco

ATLANTA-Following its acquisition of five shopping centers in the Southeast in less than two months, Oak Brook, IL-based Inland Retail Real Estate Trust adds yet another property that takes the aggregate value of its retail portfolio over the $1-billion mark, according to the company.

Inland paid $39.15 million for a majority stake in the 620,000-sf Sycamore Commons in Charlotte.

The sellers are two Charlotte-based companies, Crosland, Inc. and Faison Enterprises, which jointly developed the center early this year. The total sale price for Sycamore Commons is $48.6 million, or $78.39 per sf, according to a prepared statement from Crosland.

Inland’s proportion, not available at press time, excludes Lowe’s Home Improvement, a company-owned anchor unit of unspecified size, and the Costco anchor, also of unspecified size, which was purchased by its parent, Issaquah, WA-based Costco Wholesale Corp., at the time of the sale. The price for Costco, according to information from Crosland, would total $9.45 million.

The transaction is similar to other Inland purchases in which well-known, national retail tenants are company-owned “shadow anchors” that attract customers, but are not tenants of the mall’s owner.

In addition to Costco and Lowe’s, major tenants are Circuit City, Bed Bath & Beyond, Michael’s, Old Navy, Pier 1 Imports, World Market, and Lane Bryant.

The occupancy rate was not available. However, Rick Fox, a spokesman for Inland, tells GlobeSt.com, “the center is 100% leased from our perspective.”

He says Inland Retail required the seller to establish an escrow account to cover vacancies for the first two years.

“The center is in an excellent location, excellent market, has top-notch anchors, and should be fully leased reasonably soon,” Fox says.

He would not disclose average quoted rents but area brokers tell GlobeSt.com on condition of anonymity they are in the $16 per-sf to $22 per-sf range.

David Lampke of Faison represented the seller. Steve Sanders of Inland negotiated for the buyer.

Crosland, in partnership with Raleigh, NC-based Capital Land Investment Co., which is owned by the Poyner family of Raleigh, has begun development of Poyner Place, a 102-acre mixed-use development on Poyner property there.