Press Release, January 02, 2018
ARA Acquires Newly Constructed Retail Center
LOS ANGELES, Calif., (January 2, 2018) – American Realty Advisors (“ARA”), an institutional fund manager with more than $8.0 billion in assets under management, has acquired Central Park Commons, a newly constructed retail shopping center and medical office building in Eagan, Minnesota.
The 403,219 square-foot center is located within the Twin Cities suburb of Eagan, approximately 8.5 miles southwest of downtown St. Paul and 10.5 miles southeast of downtown Minneapolis.
“This acquisition is well-aligned with our forward-looking strategy to acquire quality retail centers in top-tier trade areas,” says Kirk Helgeson, Chief Investment Officer at ARA. “Central Park Commons is strategically located between St. Paul and Minneapolis and is positioned to benefit from these two large-scale population bases.”
Helgeson explains that the primary trade area surrounding Central Park Commons has extremely strong market fundamentals and demographics. Its population has increased by more than 4.3 percent since 2000 with an additional anticipated increase of 1.9 percent over the next five years.
In addition to its exceptionally strong trade area, ARA’s Senior Director in the Investment Group, Albert Pura, notes that the newly-constructed center was also an attractive investment for the firm based on its diverse range of national and regional credit-worthy tenants.
“The retail center is currently 97-percent occupied by a variety of strong high-quality tenants,” says Pura who points to the center’s grocery-anchor Hy-Vee, as well as tenants including Home Goods, Marshalls, Hobby Lobby, ULTA, and Petco, among others.
“With any of our retail acquisitions, we are looking for high-quality anchor tenants that will continue to perform in this highly competitive retail market,” says Pura. “Retailers offering branded items at discount pricing in limited assortment that are difficult to transition online such as Marshalls, Home Goods, etc. are well-positioned to continue to perform in this retail landscape compared to retailers who may face more online competition. Central Park Commons is dominated by these types of tenants, strategically positioning it to perform over the long-term.”
Central Park Commons is located at 3333 Pilot Knob Road in Eagan, MN 55121. Bob Mahoney at CBRE represented the seller, a joint-venture between CSM Corporation and John Johannson.
ABOUT AMERICAN REALTY ADVISORS
With more than $8.0 billion in assets under management, American Realty Advisors is a leading provider of commercial real estate investment management services. For over 29 years, ARA has managed capital for institutional investors utilizing core and value-added commingled funds and separate accounts. ARA acquires assets directly or provides equity, preferred equity, mezzanine debt, debt, and hybrid debt to primary investors and developers operating throughout the United States for office, industrial, multi-family, and retail properties. More information regarding ARA can be found at www.aracapital.com.