Regency Centers to Acquire Urstadt Biddle Properties in a $1.4 Billion All-Stock Transaction

Lisa Palmer

JACKSONVILLE, FL and GREENWICH, CT (GLOBE NEWSWIRE) -- Regency Centers Corporation (“Regency”) (Nasdaq: REG) and Urstadt Biddle Properties Inc. (“Urstadt Biddle” or “UBP”) (NYSE: UBA and UBP) announced the two companies have entered into a definitive merger agreement (the “Agreement”) by which Regency will acquire Urstadt Biddle in an all-stock transaction, valued at approximately $1.4 billion, including the assumption of debt and preferred stock.

The combined company is expected to have a pro forma equity market capitalization of approximately $11 billion and total enterprise value of approximately $16 billion.

Under the terms of the Agreement, Urstadt Biddle’s Class A Common (UBA) and Common (UBP) stockholders will receive 0.347 of a newly-issued REG share for each UBA or UBP share they own, representing a total consideration of approximately $20.40 per share based on Regency’s closing share price on May 17, 2023.

Upon closing, Regency and Urstadt Biddle shareholders will own approximately 93% and 7% of the combined company, respectively. The respective Boards of Directors of both Regency and Urstadt Biddle have each approved the transaction.

“We couldn’t be more excited about the combination of our two great companies,” said Lisa Palmer, President and Chief Executive Officer of Regency.

“The portfolio that Urstadt Biddle has carefully assembled over more than 50 years offers a highly aligned demographic and merchandising profile to Regency.

Both companies have a successful track record of owning and operating best-in-class grocery-anchored neighborhood and community centers in premier suburban trade areas, and we look forward to the synergies and growth opportunities that this transaction will offer to the combined shareholder base.”

"Regency has a long, successful history of being a sector and industry leader in the ownership and operation of high-quality shopping centers around the country, with one of the best-regarded teams in the REIT industry," said Willing L. Biddle, President and CEO of Urstadt Biddle.

 Willing L. Biddle

 "I have no doubt that our portfolio will be in great hands under Regency leadership, and as a future Regency shareholder I look forward to the scale and platform benefits that the combination of our two companies will provide.”

The combined portfolio will be comprised of 481 total properties encompassing more than 56 million square feet of gross leasable area. The combination is expected to provide several strategic benefits, including:

• Strategically Aligned Portfolios of High-Quality, Open-Air Shopping Centers: The transaction grows the combined company’s footprint of high-quality, grocery-anchored shopping centers in premier suburban trade areas while enhancing Regency’s overall geographic diversification and maintaining a strong tenant roster.
•  
• Best-In-Class Operating Platform Drives Value Creation: Regency’s sector-leading national leasing and asset management platform is positioned to unlock value within the combined portfolio.
•  
• Positive Financial Benefit: The transaction is expected to be immediately accretive to Core Operating Earnings (defined below), including approximately $9 million of annual cost savings benefit.
•  
• Maintains Balance Sheet and Liquidity Strength: The all-stock transaction preserves Regency’s well-capitalized and flexible balance sheet to support continued growth as pro forma leverage remains at the low end of Regency’s target range of 5.0x – 5.5x.

UBP is expected to align the timing of its quarterly dividend payments to Regency’s during the pendency of the merger. The transaction is expected to be non-taxable to Urstadt Biddle shareholders.

Christy McElroy

The transaction is currently expected to close late in the third quarter or early in the fourth quarter of 2023, subject to the receipt of approval of UBA and UBP shareholders and satisfaction of other customary closing conditions.

 Stockholders of UBP holding approximately 68% of UBP’s voting rights have entered into an agreement to vote in favor of the transaction.

John T. Hayes

There are no anticipated changes to Regency’s executive management team or Board of Directors.

RBC Capital Markets and Wells Fargo Securities are acting as financial advisors and Wachtell, Lipton, Rosen & Katz is serving as legal advisor to Regency Centers.

Eastdil Secured and Deutsche Bank are acting as financial advisors and Hogan Lovells US LLP is serving as legal advisor.

 

 

CONTACTS:

 

Regency – Investor Contact

Christy McElroy, SVP, Capital Markets
904 598 7616
ChristyMcElroy@regencycenters.com

Urstadt Biddle – Investor Contact

John T. Hayes, CFO
203 863 8200
jhayes@ubproperties.com

 

Tricera Capital Adds Adrian Rahimi as Chief Investment Officer

 

Adrian Rahimi

MIAMI, FL –– Tricera Capital, the Miami-based commercial real estate firm led by Ben Mandell, made a significant C-suite addition with the arrival of Adrian Rahimi as Chief Investment Officer.

Ben Mandell

Rahimi further strengthens Tricera’s executive leadership team, which boasts more than 80 years of combined experience.

In his new role at Tricera, Rahimi oversees the firm’s acquisitions department and investment arm. He focuses on deal sourcing, investment strategy and capital markets.

Ana R. Mandell

“We are thrilled to welcome Adrian Rahimi to our growing team,” Mandell said. “His diverse background in real estate and finance will add tremendous value as we pursue new acquisition opportunities throughout the Southeast U.S.”

Rahimi previously was Head of Capital Markets at multifamily developer and builder Resia, leading the sourcing, structuring, negotiation and closing of nationwide project financing totaling over $700 million in debt and equity.

Christian Ramirez

His contributions included expanding and managing the firm’s lender and capital partner relationships and growing its capital markets team and platform.

Prior to Resia, Rahimi was a commercial real estate lender, contributing to more than $1.5 billion in closings across his time at Grandbridge Real Estate Capital and Santander Bank.

Andrew Bonner 

He played a role in closings for loans sponsored by Related Group, ZOM, Lennar and many others. Rahimi also managed a $1 billion loan portfolio that included projects such as Panorama Tower, 600 Brickell, Caoba Miami Worldcenter and Maizon Brickell.

A Miami native, Rahimi earned his Bachelor of Business Administration from Florida International University and Master of Business Administration from the University of Miami. He holds a CCIM designation and active Florida real estate sales license.

Tricera’s executive team is rounded out by Chief Financial Officer Christian Ramirez, President | Head of Leasing Dustin Ballard, Vice President of Property Management Andrew Bonner and Assistant Vice President of Operations Ana Mandell.

 

 

 

CONTACTS:

 

Eric Kalis/Daniel Benjamin

954-370-8999

ekalis@boardroompr.com

dbenjamin@boardroompr.com

 

 

www.triceracap.com. 

 

 

Food for the Hungry consolidates and expands global HQ in downtown Phoenix, AZ

 

 Jami Savage-Gray

PHOENIX, AZ – International humanitarian organization Food for the Hungry has completed a lease at Renaissance Square that will consolidate its three downtown Phoenix office locations into a single global corporate headquarters, occupying just under 30,000 square feet of contiguous space within downtown’s Renaissance Square.

Ryan Bartos

The lease was managed by Jami Savage-Gray and Ryan Bartos from the Phoenix Office of JLL. Jerry Roberts and Pat Boyle of Cushman and Wakefield represented the landlord, a partnership between Oaktree and Cypress Office Properties.

 

Serving in 18 countries worldwide, Food for the Hungry provides development programs, disaster relief and advocacy focused on graduating communities from extreme poverty into self-sustainability within a decade.

 

Jerry Roberts

The organization has been operating for over 50 years, headquartered in Phoenix since 2003.

 

Food for the Hungry’s new lease will relocate approximately 130 corporate headquarters employees into 29,179 square feet at 2 N. Central Ave., one of two Class A, high-rise office buildings at the 985,000-square-foot Renaissance Square. The remaining 99% of the organization’s staff works in their country of origin.

 

“We chose Ren Square to underscore our continued commitment to downtown Phoenix, and because the management made it clear that they share Food for the Hungry’s values and commitment to serving those challenged by poverty in less fortunate places around the world,” said Food for the Hungry CEO Mark Viso. “They made us feel welcome and valued.”

Mark Viso.

“Food for the Hungry’s corporate team is tremendously dedicated, working to generate real change in the lives of some of the world’s most vulnerable people,” said Savage-Gray.

 

“It was our honor to help them consolidate their global headquarters into a single, vibrant downtown Phoenix location that will allow them to collaborate and achieve at their highest level.”

 

Pat Boyle

Recently renovated, amenities at Renaissance Square include two connected modern lobbies, a tenant lounge and game room, wi-fi enabled outdoor courtyard, tech-enabled conference facilities, upgraded health and fitness center, and the on-site Wren & Wolf restaurant and cocktail bar. The project is also LEED Gold Certified.

With a walkability score of 95, Renaissance Square is walkable to Light Rail, the Phoenix Convention Center, 145 restaurants, multiple professional sports venues and theatres, six hotels, a variety of retail stores and more than 5,800 residential units.

 

 The two-building, 985,000-square-foot
Renaissance Square, Downtown Phoenix, AZ

 

About JLL

 

For over 200 years, JLL (NYSE: JLL), a leading global commercial real estate and investment management company, has helped clients buy, build, occupy, manage and invest in a variety of commercial, industrial, hotel, residential and retail properties.

 

A Fortune 500 company with annual revenue of $20.9 billion and operations in over 80 countries around the world, our more than 103,000 employees bring the power of a global platform combined with local expertise.

 

Driven by our purpose to shape the future of real estate for a better world, we help our clients, people and communities SEE A BRIGHTER WAY^SM.

JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated.

  

In Phoenix, JLL is a market leader employing more than 527 of the region’s most recognized industry experts offering office, industrial, retail, healthcare and data center brokerage, tenant representation, facility and investment management, capital markets, multifamily investments and development services, and related services within the real estate leasing, investment and management process.

 

In 2022, the Phoenix team completed almost 115 million square feet in lease and sale transactions, with a total transaction volume of more than $11.4 million, and directed $180 million in project management.  

 

CONTACT:

 

Stacey Hershauer

Phone: +01 480-600-0195

Email: stacey@focusaz.com

jll.com.

 

Regency Centers Announces Transformative SunVet Redevelopment in Long Island, NY

Rebecca Wing

 LONG ISLAND, NY, May 19, 2023 (GLOBE NEWSWIRE) -- In a joint venture with Blumenfeld Development Group, Regency Centers Corporation (“Regency” or the “Company”) announced today plans to redevelop the SunVet Mall in Long Island, NY.

This vacant mall will be converted into a 168,000-square-foot, grocery-anchored, open-air shopping center. Once complete, it will be home to the fourth Whole Foods Market in Suffolk County and expand Regency Centers’ footprint in the market to 11 properties, which includes last year’s four-property acquisition from Serota Properties.

“When the Blumenfeld Development Group shared their vision of bringing SunVet back to life as a modern community shopping center, we knew we wanted to be involved,” said Rebecca Wing, Vice President of Investments for Regency Centers.

“Regency is committed to delivering on that vision and creating a best-in-class shopping destination that will resonate with the community for many years to come. We can’t wait to share more about our retailer lineup as construction begins later this year.”  

The redeveloped SunVet shopping center will be anchored by a Whole Foods Market and two junior anchors. The project will also include 53,000-square-feet of shops and six outparcels, including a new location for the currently operating Citibank.

The center is located at the northwest corner of Sunrise Highway and Veterans Memorial Highway, two of the largest vehicular arteries in the region.

Regency Centers will hold the majority interest in its joint venture with Blumenfeld Development Group, and will oversee leasing and operations for the location.

CONTACT:

Eric Davidson
904 598 7829
EricDavidson@RegencyCenters.com

RegencyCenters.com

Ware Malcomb Promotes Jason Dooley to Regional Vice President, Southeast Region

Jason Dooley

 

ATLANTA, GA – Ware Malcomb, an award-winning international design firm, announced Jason Dooley, AIA has been promoted to Regional Vice President, based in the firm’s Atlanta office.

In this role, Dooley is responsible for the overall leadership of the Southeast Region, including the Atlanta, Miami and Nashville offices along with executive oversight of the firms Multifamily and Healthcare practices.

“Jason has an innate understanding of high-quality design and has helmed the firm’s explosive growth in the region since opening our Atlanta office in 2016,” said Matt Brady, Executive Vice President for Ware Malcomb.

Matt Brady

“He has contributed outstanding leadership. Together with his teams, he has provided exceptional service to our firm’s national clients and developed many new relationships throughout the Southeast area.”

Dooley has held several leadership roles in his seven years with the firm and was a Principal for the Atlanta office prior to his most recent promotion.

 With more than 24 years of experience in all facets of architecture and interior design, he has worked on a wide variety of project types including multifamily, industrial, healthcare, office, science & technology and higher education projects. 

Dooley is a Licensed Architect in the states of Georgia, Florida, South Carolina, North Carolina, Virginia, Kentucky, Tennessee, Alabama, Mississippi and Louisiana.

  He holds both a Bachelor of Science and Master of Architecture degrees from the Georgia Institute of Technology in Atlanta and is an active member of National Association of Industrial and Office Properties (NAIOP) and the American Institute of Architects (AIA).

Ware Malcomb opened their Miami office in 2015, Atlanta office in 2016 and Nashville office in 2022. The firm has worked on more than 1,500 projects in the Southeastern United States.

CONTACTS

 Rachel Devany

VP Public Relations,

 KCOMM for Ware Malcomb

rachel@kcomm.com

 Maria Rodgers, Director, 

PR & Communications, 

949.660.9128,

 mrodgers@waremalcomb.com

 Maureen Bissonnette, Principal,

 Marketing, 

949.660.9128

 mbissonnette@waremalcomb.com

waremalcomb.com

 

Bandon Capital Advisors secures $14 million in financing for 49,000-SF single-tenant office building in El Segundo, CA

REFINANCED: a 49,000 square-foot single-tenant
 creative office building in El Segundo, CA

  

 EL SEGUNDO, CA – Bandon Capital Advisors, a leading commercial mortgage banking and capital advisory firm based in Los Angeles, California, has arranged a $13.99 million loan for the refinance of a 49,000 square-foot single-tenant creative office building in El Segundo, California on behalf of BLT Enterprises. 

Bryan Kenny

This specific transaction underscores the viability of office financing in the current landscape, explains Bryan Kenny, co-founder and president at Bandon Capital Advisors.

Bandon’s partners have completed more than $5 billion in historical transactional activity with Kenny and co-founding Principal William James successfully closing over $600 million in the last 36 months, including several office deals. 

“Despite the challenges office real estate is undergoing and the uncertain economic environment, we were able to secure favorable financing for a quality office property on behalf of our client,” says Kenny.

“The Los Angeles office sector took a hit during the pandemic, but if landlords can deliver quality, amenity-rich office spaces outside of CBDs, they will likely outperform the greater office market.” 

William James

Successful closings like this one illustrate that with experienced sponsorship, a historically good submarket, and moderate leverage, lenders are willing and able to finance office properties.

“Bandon drew upon its established relationships with financial institutions to complete the transaction, sourcing an aggressively priced, long-term fixed-rate loan with interest-only periods followed by a 30-year amortization through one of the firm’s trusted life company lenders,” adds Kenny.

“We’re seeing some financial institutions, especially banks, tighten their credit standards and become more conservative in their underwriting, with many not lending on office assets at all,” notes Kenny.

Robert Solomon,

“The success of this El Segundo deal serves as a prime example that life company lenders, some of whom we’ve worked with for over two decades, are showing interest in moderately leveraged office deals supported by strong, experienced sponsors.”

“The Bandon team’s relationship-driven approach with lenders took this deal over the finish line with financing that aligns with our long-term business goals,” according to Robert Solomon, President and Chief Legal Officer of BLT Enterprises.

“Through Bandon’s financing expertise and experience with life lenders, we were able to rate lock our application for 90 days and secure rate resets every 10 years,” says Solomon.

Situated in Los Angeles County’s South Bay with commuter-friendly proximity to LAX and the 405 and 105 freeways, El Segundo was named 2022’s “Most Business-Friendly City in L.A. County” by the Los Angeles County Economic Development Corporation, with major companies including AT&T, L’Oréal, the Los Angeles Times, Belkin International, Mattel, and DaVita Healthcare all calling the city home to their headquarters.

The refinanced property includes 49,000 square-feet of creative office space with tenant-friendly features such as highly finished offices, kitchens, conference rooms, and a finished basement.

Its tenant, Nexon, a long-time innovator in interactive entertainment software, uses the space as their U.S. headquarters.

With tech companies at the forefront of return-to-office requirements and giants like Twitter and Apple leading the charge, Nexon is well-positioned to thrive in the post-pandemic professional hub that is El Segundo.

Contacts:

 

Sophia Reznicek/Lexi Astfalk  

The Smart Agency

(949) 438-6262

sreznicek@thesmartagency.com

JLL Capital Markets secures $65.8 million of preferred equity from Pensam and arranges a $154 million Freddie Mac loan for the recapitalization of Landmark South in Doral, FL

                     Landmark South, a 631-unit, mid-rise 

                     multi-housing community in Doral, FL

 

 MIAMI, May 17, 2023 – JLL Capital Markets has arranged the recapitalization of Landmark South, a 631-unit, mid-rise multi-housing community in Doral, Florida.

Jesse Wright

JLL worked on behalf of the borrower, JSB Capital Group, to secure the five-year, $154.1 million senior loan through Freddie Mac Multifamily. 

The loan will be serviced by JLL Real Estate Capital, LLC., a Freddie Mac Optigo℠ lender.

 

JLL simultaneously arranged a $65.8 million preferred equity investment from Pensam.

 

Built across two phases in 2017 and 2021, Landmark South features units with terraces, courtyard views, stainless steel appliances, in-unit washers and dryers, European-style cabinetry, walk-in closets and an average size of 1,017 square feet.

Brian Gaswirth

Community amenities include grilling stations in outdoor courtyards, fitness centers and more.

 

The property is located at 6055 NW 105th Ct.

 

The JLL Capital Markets Advisory team was led by Senior Director Jesse Wright, Managing Director Brian Gaswirth, Managing Director Maurice Habif, Senior Director Simon Banke and Senior Director Ted Taylor.

Simon Banke

According to Wright and Gaswirth, “The borrower was able to take advantage of a highly competitive preferred equity market alongside strong senior financing from Freddie Mac to significantly lower its cost of capital on this trophy asset.

Maurice Habif

"Pensam and Freddie Mac both delivered in the face of significant macro headwinds.”

 

Hen Shoval, Director of Investments at Pensam, stated, “We have been incredibly active in providing structured finance solutions to complete the capital stack on deals such as Landmark South.

 

"The current interest rate environment is leading to compressed senior loan proceeds, which in turn is creating funding gaps that can be addressed with Pensam’s preferred equity or mezzanine debt.

 

Hen Shoval

"Over the past few years, we have closed well over one hundred transactions of this kind and are therefore experienced to navigate through complex transactions in compressed timeframes.”

 

Pensam is a Miami-based multifamily real estate investment platform that has invested in $7.5 billion across its platform and in across 50,000 apartment units in 28 states.

 

The firm focuses on the multifamily sector by making direct equity investments and by delivering structured finance capital solutions, such as bridge loans, preferred equity and mezzanine debt to other sponsors.

Jared Frydman

 “Working closely with Pensam and JLL provided us unique visibility into the professionalism and smarts of these two organizations,” said Jared Frydman, JSB Senior Managing Director and Head of its Miami office.

 

“This was not a transaction short on complexity or volatility.  We raise our hands in tribute to Pensam and JLL for closing this deal so quickly and forthrightly. 

 

"Landmark South is a jewel in the constellation of Doral, and JSB looks forward to helping it shine even more brightly in the years ahead.”

JLL delivers multi-housing investors a full range of solutions through one diverse, integrated platform.

Ted Taylor

The division employs approximately 400 professionals who provide comprehensive investment sales and disposition services with access to thousands of domestic and foreign investors.

 

 JLL is also one of the nation’s largest affordable and conventional multi-housing and seniors housing lenders with comprehensive loan underwriting, asset management and loan servicing capabilities.

 

Agency/GSE lending and loan servicing are performed by JLL Real Estate Capital, LLC, a wholly owned indirect subsidiary of Jones Lang LaSalle Incorporated.

 

Contact: 

 

Jenna Sharp,

JLL Associate,

 Public Relations

Phone: +1 214 394 3356

Email:  Jenna.Sharp@am.jll.com