Farmington Hills, Mich.-based real estate investment trust Ramco-Gershenson Properties Trust announced recently that it has purchased the 135,484-square-foot Shoppes at Fox River shopping center in Waukesha for $23.8 million, or $175.66 per square foot, from Minnetonka, Minn.-based The Opus Group.
The Shoppes at Fox River is located at 1200 W. Sunset Dr. on the west side of the city of Waukesha. It is 93.4 percent leased. The anchor tenant is a 61,045-square-foot Pick ‘n Save store. Other tenants include Petco, Dollar Tree, Famous Footwear, Buffalo Wild Wings, Subway and GNC.
The 132,382-square-foot Target store at The Shoppes at Fox River is owned by Target and is not part of the deal.
Ramco-Gershenson said that there is a population of about 89,162 people and an average household income of $73,843 within a five-mile radius of The Shoppes at Fox River.
“The acquisition of the Shoppes at Fox River is consistent with our strategy of acquiring high-quality shopping centers in superior locations with market-dominant anchors,” said Dennis Gershenson, president and chief executive officer of Ramco-Gershenson. “In turn, this purchase…underscores our ability to source and purchase class A shopping centers at very attractive pricing.”
As part of the deal, Ramco-Gershenson agreed to lend The Opus Group $3 million, secured by a 17.9-acre parcel of land adjacent to the shopping center. As part of the loan, Ramco-Gershenson has secured certain rights relative to the adjacent land. The loan is an interest only loan and has a two-year term and an interest rate of 7.5 percent.
Ramco-Gershenson said it secured a short-term $30 million bridge loan to fund the acquisition of The Shoppes at Fox River. The company said it plans to repay the bridge loan and pay down additional debt with proceeds from the sale of three shopping centers and by refinancing mortgages on two of its other properties. Those transactions are expected to close before the end of the first quarter of 2011, the company said.
The Shoppes at Fox River was built at the former Fleming Cos. property northwest of Sunset Drive and Chapman Drive. Opus started construction of the project in 2008.