REIT Buys One Shopping Center, Sells Another

CLEVELAND, OH-Two properties in Missouri recently were traded, and both deals included Developers Diversified Realty of Cleveland, OH.

The REIT, in a joint venture with DRA Advisors LLC and on behalf of a group of institutional investors, has sold a St. Louis shopping center called Clocktower Place.

The property, purchased by the venture in 1999, totals 211,000-sf, is more than 98% leased and is anchored by TJ Maxx, Office Depot and Dierberg’s Marketplace.

The property was sold to Heritage Property Investment Trust Inc. for approximately $22 million. Developers Diversified held a 50% ownership interest in the asset. The sale generated an aggregate gain of $5.2 million, of which the company’s proportionate share was $2.6 million.

The REIT also was recently involved in a partnership entity with New York-based Coventry Real Estate Partners in buying Ward Parkway Center in Kansas City from Ward Realty LLC. The property, a hybrid “lifestyle” center, consists of a 119,000-sf Target that replaced former anchor Montgomery Ward, a 200,000-sf Dillard’s and a 14-screen AMC Theatre, as well as a Starbucks, TJ Maxx, Stein Mart, Pier 1 Imports, 24-Hour Fitness, Dick’s Sporting Goods and more.

Terms of the transaction were not disclosed.

Shawn Todd, President of Todd Interests, managing partner of Ward Realty, said his company acquired the property in 1999 approximately 60% occupied, “de-malled” 80,000-sf of vacant space, made architectural improvements and initiated a leasing campaign resulting in a 300,000-sf wave of new tenants.