This article is from the Australian Property Journal archive
Galileo Shopping America Trust has bought a community shopping centre, the Marketplace at Matteson for $US23.94 million.
Located in the City of Matteson, Cook County (Chicago MSA) in Illinois, Marketplace at Matteson comprises GLA of 309,864 sq ft.
The centre is 93% leased and has a projected year one yield of 7.2%, with a projected yield of 8.5% on a fully leased basis.
Marketplace at Matteson is anchored by Cub Foods Grocery Store (Supervalu), the second largest food retailer in the US, Burlington Coat Factory Department Store, AJ Wright (TJX Companies) and Aaronson Furniture.
The centre is within the Lincoln Mall regional trade area and benefits from the retail corridor regional drawing power as evidenced by the large number of national retailers represented in the market.
The centre services a five mile radius residential population of 173,000 people with an average household income of US$70,075.
This acquisition was settled using floating rate debt, the majority of which is to be replaced by CMBS financing in mid February.
Meanwhile, GSA has sold its Lady’s Island Shopping Center in Beaufort, South Carolina for US$3.9million.
The asset was previously anchored by a Winn-Dixie grocery store which vacated the centre following the announcement of Chapter 11 bankruptcy proceedings in June 2005.
The sale price reflects a passing yield of approximately 3.2%. The proceeds of this sale will be used to repay floating rate debt.
Following this acquisition and disposition, GSA’s total gearing ratio is forecast to be approximately 60%.
By Nelson Yap
