NEW YORK--(BUSINESS WIRE)--Seritage Growth Properties (NYSE:SRG) and First Washington Realty, a national real estate investment and management company, today announced a joint venture partnership to own The Corbin Collection, the 163,700 square foot redevelopment of the former Sears store and auto center in West Hartford, Connecticut.
The transaction values The Corbin Collection at approximately $52 million, including costs remaining to complete the project. Seritage sold a 50% interest in the project to an affiliate of First Washington Realty, and received proceeds of approximately $23 million at closing, which it utilized primarily to repay existing mortgage debt associated with the property.
The partnership simultaneously closed on a $20 million loan with M&T Bank that can be increased by an additional $10 million subject to the achievement of certain criteria. The loan matures in May 2020 with two one-year extensions subject to certain conditions.
“The strength of our platform and high quality portfolio continue to be recognized by institutional investors who seek to partner with Seritage to participate in the value we are creating in communities across the country,” said Benjamin Schall, President and Chief Executive Officer of Seritage Growth Properties. “We are very pleased to join with First Washington Realty on the redevelopment of The Corbin Collection, where we have curated a diverse group of national, growing retailers in West Hartford, Connecticut. Further, through this transaction we were able to incrementally enhance our balance sheet, having deployed the proceeds toward the repayment of existing mortgage debt while the partnership concurrently locked in project financing.”
“We believe The Corbin Collection is set to be a key element in the main retail hub of the West Hartford community. We are very pleased to be part of this transformative project and delighted to kick off our first partnership with the strong team at Seritage” stated Alex Nyhan, Co-President and Managing Director of First Washington Realty.
The Corbin Collection will be occupied by a diverse mix of leading retailers and restaurants, including REI, Saks OFF Fifth, Buy Buy Baby, Cost Plus World Market and Shake Shack, all of which are now open or under signed leases.
About Seritage Growth Properties
Seritage Growth Properties is a publicly-traded, self-administered and self-managed REIT with 225 wholly-owned properties and 24 joint venture properties totaling approximately 39 million square feet of space across 49 states and Puerto Rico. The Company was formed to unlock the underlying real estate value of a high-quality retail portfolio it acquired from Sears Holdings in July 2015. Pursuant to a master lease, the Company has the right to recapture certain space from Sears Holdings for retenanting or redevelopment purposes. The Company’s mission is to create and own revitalized shopping, dining, entertainment and mixed-use destinations that provide enriched experiences for consumers and local communities, and create long-term value for our shareholders.
About First Washington Realty
First Washington Realty, Inc. is a privately owned real estate investment, advisory and management company which specializes in the ownership of neighborhood and community shopping centers located in densely populated areas throughout the United States. An affiliate of First Washington Realty currently has investments in 94 shopping centers with a value of over $4.6 billion located in 22 states and the District of Columbia containing approximately 12.8 million square feet. First Washington Realty is headquartered in Bethesda, MD.