Whitehouse, OH, December 23, 2013 — Devonshire REIT, Inc., a private real estate investment trust, announced today the acquisition of five retail properties in Ohio for $31 million.
Monroe Street Square Shopping Center at 5333 Monroe Street, Toledo, Ohio is a 124,904 square foot Hobby Lobby anchored center. Other national retail tenants occupying the center include Sally Beauty Supply, Gamestop, Play It Again Sports and Sprint PCS.
Bed Bath & Beyond Plaza at 5135 Monroe Street, in Toledois a 100% leased, 55,139 square foot Bed, Bath & Beyond anchored center with SalonCentric and Edward D. Jones as additional national tenants.
Office Depot Plaza at 5107 Monroe Street is a 100% leased, 45,594 square foot Office Depot anchored center that includes national tenant Aaron Rents and other local tenants.
Pier 1 Imports at 5203 Monroe Street is a 9,860 square foot single-tenant triple-net leased property.
Villages at Waterville Landing in Waterville, Ohio is a 350 acre mixed use development with 125 acres zoned for retail development. Devonshire has acquired the retail portion of the project which currently includes a new, 80,000 square foot Kroger, a Farmers & Merchants State Bank branch and a Speedway fuel center that is under construction. Plans for the remaining undeveloped retail space are being kept confidential at this time.
Goldman Sachs Mortgage Company provided financing for the Monroe Street acquisitions and for the refinancing of the first phase at Franklin Place. The financing package totaled $24 million.
Chris Campbell, CEO and President of Devonshire said, “We believe in, and are investing in, the future of the Toledo metropolitan area. The acquisitions on Monroe Street and in Waterville prove this by effectively bracketing this area. With the jobs created by the new retailers Devonshire attracts to its centers and those created by the construction and management of those centers, Devonshire is a catalyst for Toledo’s reawakening economy – not just a beneficiary.”
“We will now have over 555,000 square feet of leasable space in the premier retail corridor of Toledo and can control the look and feel of almost three quarters of a mile of the south side of Monroe Street,” added Mike Denman, Devonshire’s Executive VP of Real Estate. “With this and the Waterville property, we have the opportunity to create two truly unique destination shopping areas that won’t compete with each other.”
The properties were purchased from local real estate developers and investors, Tom Helberg and Thomas Schlachter, both of whom expressed their faith in the future of the properties and Devonshire.
Mr. Helberg commented, “The combination of Devonshire’s capital base, professional management team and ties to the community make them a good fit to maintain the quality we have always strived for in our properties and even take them to the next level.”
“I was reluctant to sell the shopping centers,” added Mr. Schlachter. “However, I have been primarily a residential developer in my career and when the opportunity came to team up with Devonshire, it seemed like a natural fit. They have great expertise in the retail and commercial arenas and I will be able to focus on the residential side of the Waterville Landing project.”
Hobby Lobby, Inc. is one of America’s largest privately held companies and is considered a leader in the arts and crafts industry. The company operates 578 stores in the US.
Bed Bath & Beyond, Inc. is the largest retailer of home goods specific items in the United States with $11B in annual revenue from 1,471 stores located in all 50 states, Puerto Rico and Canada.
Office Depot, Inc. is the world’s largest office products retailer with $17B in annual revenue from over 2,200 stores located in 59 different countries.
Pier 1 Imports, Inc. specializes in imported home furnishings and decor. The company operates over 1,000 stores in the United States, Canada and Mexico and generates approximately $2B in annual revenue.
The Kroger Company is the largest traditional grocer in the United States with 2,424 locations in 31 states and $97B in annual revenue.
About Devonshire REIT, Inc.
Devonshire REIT, Inc. is a fully integrated commercial real estate company that owns, operates, and develops dominant shopping centers and necessity properties primarily in the Great Lakes and Midwest regions of the United States. The company’s portfolio consists of 42 properties representing almost 3 million square feet of leasable space. Devonshire REIT is available for investment only through select community bank trust departments, family offices and Registered Investment Advisors. Additional information can be found at www.devreit.com.