Vestar, the developer of Tempe Marketplace, has bought out its original partner, DLJ/Credit Suisse, in a $280 million transaction that makes Rookwood Capital a new partner. The shopping center also received a new $200 million permanent financing package from German American Capital Corp.
“We believe in the real estate fundamentals in the Tempe market and this asset’s ability to provide healthy risk-adjusted returns with limited downside due to strong in-place income,” said Joel Mayer, Rookwood’s head of retail, in a statement. “And Vestar is the ideal developer to partner with to maximize operations because of their extensive knowledge of the asset and the market.”
Both Rockwood and Vestar made significant investments in the acquisition. Under terms of the deal, Vestar will be the managing partner.
The announcement also teased another big deal to be disclosed later this month.
“Our partnership with Rockwood Capital, when combined with other announcements coming, is the capstone of a busy year that positions Vestar for a very bright future in our key markets,” said Vestar President Rick Kuhle in the statement.
The statement said Vestar intends to close next week on two retail properties in California, totaling approximately 400,000 square feet — and in mid-December the acquisition of another major project in Arizona is expected, it said.