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Lubert-Adler Sells Two Regional Shopping Centers for $336 Million

Starwood Capital Acquires Hamburg Pavilion in Kentucky; AEW Takes Forum Peachtree in Georgia
July 24, 2014
Lubert-Adler Partners, a real estate investment company headquartered in Philadelphia, PA, cashed in on an equity and debt investment through the sale of two regional shopping centers - the Hamburg Pavilion in Lexington, KY and the Forum Peachtree in Norcross, GA - for an aggregate sum of $336 million.

Greenwich, CT-based Starwood Capital Group acquired the majority of the one million-square-foot Hamburg Pavilion for $186 million. AEW Capital Management out of Boston closed on Forum Peachtree for $150 million.

Lubert-Adler began making equity and debt payments on the centers in 2008 as the recession led to retailer bankruptcies and, consequently, retail vacancies. During that time, the firm invested in a third center, the 265,000-square-foot Forum Carlsbad in Carlsbad, CA, which would later be acquired by TIAA-CREF in 2011 for $180 million. All three centers were developed by Thomas Enterprises.

Hamburg Pavilion opened in 2000 on 105 acres along I-75 and is one of the state’s largest shopping destinations. The power and lifestyle center is 99% leased, the majority of which to big-box format stores including Kohl’s, Marshalls, Dick’s Sporting Goods, PetSmart, DSW Big Lots, and Ross. Inline tenants, including nine restaurants, occupy the remaining space. Target, as well as several outparcels, were not involved in the transaction. Starwood Retail Partners, an affiliate of Starwood Capital Group, will manage the center.

Located approximately 20 miles northeast of downtown Atlanta, Forum Peachtree is a 368,000-square-foot, open-air European-style shopping center completed in 2002 along Peachtree Pky. The center is fully leased to Trader Joe’s, HomeGoods, Ann Taylor, Barnes & Noble, J. Crew, Williams-Sonoma, Pottery Barn, Old Navy, Banana Republic, and a number of restaurants and other retail tenants.

For more information on the sale of Hamburg Pavilion, Please see CoStar Comp #3076531. For more information on the sale of Forum Peachtree, please see CoStar Comp #3076530.

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