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Profile AmCap Bolsters Portfolio Through Joint Venture by Nick D’Amore AmCap, Inc. continues to add to its ever-growing portfolio. Teaming up with Hart Realty Advisors, Inc. since March 2005 on behalf of an institutional investor, the joint venture has invested hundreds of millions in acquiring shopping centers nationwide. Most recently, the companies acquired NorthPoint Center, a 275,000 sq.ft. site in Arlington Heights, Illinois for $62.8 million. The site is anchored by Jewel-Osco, Old Navy, Office Depot and Ulta. AmCap is actively acquiring dominant grocery-anchored power and shadow-anchored shopping centers with strong anchor tenants and good sales. Supermarket anchors must be one of the top two grocers in its particular market or sales must exceed $500 psf to be a potential buy for AmCap. The company is targeting the Northeast, Mid-Atlantic, the Carolinas, Florida and the Rocky Mountain West, as well as other markets where a critical mass can be assembled in its campaign to acquire retail assets. Since the joint venture’s inception, the concern has acquired 1.57 million sq.ft. valued at $350 million.
Founded in 1979 by Jay Kaiser, the company’s president and chief executive officer, AmCap employs more than 25 people and has a portfolio of about four million sq.ft. Kaiser guides the daily operation and strategic direction of the company, having sold or financed more than $2 billion of real estate throughout his career. Jake Bisenius, director of acquisitions, handles acquisitions, dispositions and financing of the company’s portfolio. The company is based in Stamford, CT.
AmCap taps the expertise of brokers for most of its acquisitions. Brokers were involved in the majority of AmCap’s recent acquisitions; $137 million in transactions was brokered by CB Richard Ellis; a $102 million deal with Mid-America Real Estate Corp. and a $46 million buy with GVA Williams of Connecticut, LLC.
In March 2005, AmCap teamed with Simsbury, CT-based Hart Advisors, initiating a $450 million acquisitions program to obtain dominant, grocery-anchored retail centers. The companies targeted markets east of the Mississippi River and the greater Denver and Phoenix areas. The first property acquired was Copaco Center in Bloomfield, Connecticut for $40.385 million. The 417,000 sq.ft. community center is anchored by Super Stop & Shop, Lowe’s Home Improvement and Burlington Coat Factory.
In January, the companies acquired Ballantyne Commons East Shopping Center in Charlotte, North Carolina for $46 million. The 133,542 sq.ft. site is anchored by Harris Teeter Grocery, Eckerd Drug, Fox & Hound, Blockbuster Video, Wolf Camera and Supercuts.
In July, the joint venture also acquired Clayton Retail Stores, a 182,802 sq.ft. center in Denver, Colorado for $97 million. The site is anchored by Crate & Barrel, Whole Foods Market, Bose, Orvis, NoRTH, White House/Black Market and Arhaus. Subsequent to the acquisition, AmCap formed a joint venture, outside of the Hart Realty Advisors funding, to acquire a 155,000 sq.ft. site currently occupied by Sears. The Clayton Lane acquisition marked the fifth transaction of a $450 million acquisitions program for the AmCap-Hart joint venture. Bisenius said the two companies are in talks now to institute a new round of funding once the $450 million is exhausted.
When assessing properties, AmCap emphasizes leasing, management and marketing while considering areas such as capital improvement, rehabilitation, renovations and complementary tenant mix. Included in AmCap’s portfolio is the 406,736 sq.ft. Arborland Center in Ann Arbor, Michigan, a power center anchored by Hiller’s Market, Toys “R” Us, Bed Bath & Beyond, Borders and Circuit City. Another large property is Market Square Union & Alameda in Lakewood, Colorado. The 243,236 sq.ft. center is anchored by King Soopers, Ace Hardware and 24-Hour Fitness.
According to Bisenius, AmCap seeks only institutional grade sites and will not buy properties below a 6% Cap rate. The company also looks for a 30% NOI growth during a 10-year period and targets properties with an 8% unleveraged IRR.
AmCap’s portfolio has six centers anchored by King Soopers in Colorado, including Market Square 80th and Wadsworth in Arvada, a 136,191 sq.ft. center also anchored by Dress Barn and Ace Hardware; the 102,756 sq.ft. Market Square 84th and Pecos center in Federal Heights; the 83,243 sq.ft. Market Square Leetsdale and Monaco center in Denver; the 120,498 sq.ft. Market Square Mississippi and Havana Center in Aurora and the 92,759 sq.ft. Market Square Wadsworth and Jewell center in Lakewood.
AmCap’s portfolio also includes Gerbes Center, a 56,266 sq.ft. shopping center anchored by Gerbes Supermarket and located in Jefferson, Missouri; Southgate Plaza, a 60,446 sq.ft. center anchored by Dillons Supermarket in Salina, Kansas; Arbutus Shopping Center, a 92,134 sq.ft. site anchored by Mars Supermarket, Rite Aid and Blockbuster Video in Arbutus, Maryland and Cowesett Corners Center in Warwick, Rhode Island, a 159,391 sq.ft. site anchored by Super Stop & Shop, Applebee’s and Fashion Bug.
The company also owns freestanding supermarkets throughout Arkansas, Arizona, Indiana, Kansas, Louisiana, North Carolina, New Mexico, Ohio, Oklahoma, Texas, Virginia and Washington. AmCap is also involved in third party leasing/management of several properties throughout Colorado.
Bisenius said the company wants a larger presence in the Pacific Northwest as well as Arizona. The California market appears to be a tougher market in which to gain footing. “California buyers are pushing up Cap rates there,” he said.
Outside of the joint venture with Hart Realty Advisors, AmCap is actively acquiring properties for its own portfolio, but there are not any stringent criteria for those properties. “If there’s a property that has more of a risk than the fund wants, we will see if it’s something that makes sense for AmCap,” Bisenius said.
For more information, contact Jake Bisenius, AmCap Inc., 1281 East Main Street, Stamford, CT 06902; 203-327-2001; Email: jbisenius@amcap.com; Web site: www.amcap.com. |