Syndicated Equities Sells Shopping Center for $32.5 Million
Syndicated Equities, a sponsor of securitized 1031 exchange offerings, has sold Plaza at the Pointe, a regional shopping center located in Pittsburgh, Pennsylvania, for $32.5 million.
Syndicated Equities, a sponsor of securitized 1031 exchange offerings, has sold Plaza at the Pointe, a regional shopping center located in Pittsburgh, Pennsylvania, for $32.5 million.
Syndicated purchased the property in 2016 for $24.5 million alongside M&J Wilkow, Ltd., a Chicago-based owner and operator of retail and office properties throughout the country. At the time of acquisition, the 150,000-square-foot retail center was 100 percent occupied by a combination of national and regional tenants, including Bed Bath & Beyond, La-Z-Boy, Party City, Old Navy, Dress Barn, and Bob’s Discount Furniture.
The company noted that most of the tenants had short term leases and below market rental rates. During the hold period, M&J Wilkow executed a value-add strategy of securing lease extensions at higher rental rates and securing two new tenants, Armenia Stone and Sportsmen’s Warehouse, to improve the tenancy at the center.
Syndicated reported that the investment “produced a profitable sale and earned investors a 1.7x equity multiple and 11.6 percent internal rate of return.”
“We are very pleased with the outcome of this investment, especially in light of the struggles that brick and mortar retail faced during the Covid-19 pandemic,” the company said. “M&J Wilkow, having identified a center in a top tier market with below-market rents, was able to manage through that difficult time and still execute on its strategy of securing new tenants and lease renewals at higher rates. They achieved long-term stabilization with significant value enhancement.”
Syndicated Equities provides accredited investors and family offices with commercial real estate investments. Since 1986, the firm has focused on co-investment ownership, net lease brokerage services, global real estate opportunity funds, and more recently, qualified opportunity zones. To date, Syndicated Equities has made more than 100 investments representing over $500 million of equity and $2 billion of total asset value.
