Tempe Marketplace, a 1+ million square foot retail center located in Tempe, Arizona, was acquired by its developer Vestar Development Company from its original partner—DLJ/Credit Siusse. Vestar Development makes Rockwood Capital its partner for this $280 million buy-out deal for the retail center.
The retail center’s buy-out transaction also includes a permanent financing package worth $200 million from German American Capital Corp.
Under the terms of the transaction, Vestar Development is going to be the managing partner.
Tempe Marketplace is known for its tenant success, environmental and architectural excellence, and has recently received an award from the Conference of Shopping Centers’ U.S. Design and Development Shopping Center Awards.
Completed on 2007, the retail center is 94 percent leased. It sits on a 120-acre area space, and located at 202 Freeway and Loop 101 in Tempe, Arizona.
For a $280 million transaction, the retail center becomes the largest completed real estate deal for 2010 in Arizona and one of the largest across United States.
According to David Larcher, Vestar’s Executive Vice President, Arizona is a growing market and Rockwood Capital understands the market value of Tempe Marketplace.
Head of Retail at Rockwood Capital, Joel Mayer said that Vestar is an ideal developer to maximize its operation because of the company’s intensive knowledge of the property.
Vestar will also close various transactions on two retail properties next week in California and another project in Arizona on mid-December.
The retail center’s major tenants include Harkins Theatre, Best Buy, JC Penney, Barnes & Noble, and Target.