Commercial Real Estate Deals for the Week of June 24, 2024

A roundup of notable commercial real estate transactions.

Federal Realty Investment Trust sold its remaining assets on Third Street Promenade in Santa Monica for $103 million, or $557-per-square-foot, as new ownership along the pedestrian street is set to remake the retail and office district. Along with another property that was sold last December, Federal Realty Investment Trust sold an aggregate of $120 million in assets. The transactions, which closed on June 6, mark the end of the Bethesda, Md.-based company’s 28-year ownership at the Promenade.

“The divestiture of our Third Street Promenade assets marks a key step in our strategy to optimize our portfolio and strengthen our balance sheet,” said Jan Sweetnam, executive vice president and chief investment officer of Federal Realty, in a statement.

Less than two weeks later, Santa Monica-based Macerich Co. surrendered the Santa Monica Place mall to its lender after defaulting on a $300 million loan. Macerich acquired the 527,000-square-foot mall in 1999 and it underwent a major renovation in 2010 to revitalize it as an outdoor shopping center. However, the mall lost major tenants including a movie theater and Bloomingdale’s in recent years.

Irvine

MGR Real Estate acquired 2020 Main St. in Irvine for $53.7 million, or $195-per-square-foot, last month. The 12-story, 271,000-square-foot Class A office building is located within Irvine Concourse. It was 66% vacant at closing, but MGR has signed approximately 27,000-square-feet of new deals since closing.

“We will continue to be bullish on the office market. If you look at the traffic on the freeways, you can see that people are starting to return to the office,” said Michael Rademaker, chief executive of MGR Real Estate, in a statement.

The seller, PGIM, acquired the building in 2001 from the original developer, Opus. Hankey Capital provided a $33 million loan to MGR for the acquisition. MGR Real Estate’s Michael Rademaker, James Meyer and Tony Hermosillo represented the buyer. Eastdil Secured’s Justin Shepherd, Adam Edwards and Bailey Bland represented the seller.