Carolina Pavilion Sold for $106M
By Eliza Theiss, Associate Editor
The start of a new year, as always, is the time of new reports in the real estate industry. And so DDR Corp., an owner and manager of value-oriented shopping centers in North and South America, has released its sales and acquisitions activity report for the fourth quarter of 2012. According to a press release, two major acquisitions were made in Q4 2012, both in North Carolina.
One of the purchased properties is Carolina Pavilion—the 852,000-square-foot prime shopping center located on the corner of South Boulevard and Interstate 485 in Charlotte. Purchased for $106 million, the power center is currently 94 percent leased, with that percentage expected to increase in the near future, as 85,000 square feet of currently vacant space will be taken up by national chains such as Golfsmith and PetSmart.
Current anchor tenants include Target, Kohl’s, Bed, Bath &Beyond, AMC Theatres, Nordstrom Rack and Craft Stores, among others. Carolina Pavilion has a trade area population of 812,000, with average household incomes of $78,000, serving the affluent suburbs to the south of the Queen City, as well as the I-77 residential corridor and neighborhood of South Charlotte.
The other recently acquired North Carolina property is 434,000-square-foot Poyner Place in Raleigh. The 96 percent leased prime power center was purchased for $45 million. Boasting anchor tenants such as Target, Old Navy and World Market, among others, the shopping center sits in a trade area populated by 367,000, with average household incomes of $78,000.
Neither property is encumbered by mortgage debt. Funding for both purchases was provided by a combination of asset sale proceeds, new common equity and unsecured notes issued in November.
Photo courtesy of Kelly Martin via Wikimedia Commons
Chart courtesy of Marcus & Millichap