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HFF arranges $150 million joint venture equity recapitalization for 3-property retail portfolio in Fairfield, Connecticut

NEW YORK, NY, March 13, 2014 - HFF announced today that it has arranged an approximately $150 million joint venture equity recapitalization for a three-property retail portfolio totaling 315,121 square feet in Fairfield, Connecticut, a prominent suburban New York community.
HFF worked on behalf of the client, Kleban Properties, to secure the joint venture equity through Regency Centers Corporation.  The equity proceeds are being used to acquire a majority interest in the properties. Kleban Properties will retain management and leasing. 

The portfolio is 100 percent leased and consists of more than 100 diverse tenants including nationally recognized retailers and businesses such as Banana Republic, The Gap, Old Navy, Victoria`s Secret, Bank of America, Wells Fargo, Citibank, Morgan Stanley and Fidelity, as well as some of Fairfield`s top dining and entertaining establishments. Two of the properties (Fairfield Center and Brick Walk) are high-street retail assets located downtown along the Post Road Corridor, while the other (Black Rock) is located at one of the busiest intersections in Fairfield with a highly dense population of 120,000 people within three miles of the property. Each property provides convenient access to the densely populated and high income neighborhoods in the area, major highways serving Fairfield, Fairfield University`s faculty and students, and the Fairfield Metro North Station that connects to Manhattan`s Grand Central Station one hour away.

Individual property details are listed below:

Property Name/Location Size Year Built/Renovated Occupancy
Black Rock Shopping Center
2181-2233 Black Rock Turnpike 
98,481 SF 1965/1997 100%
Brick Walk
1125-1275 Post Road
124,224 SF 1960/2010 100%
The Fairfield Center Building 
1499 Post Road  
92,416 SF  2001 100%

The HFF team representing Kleban Properties was led by managing director Rob Rizzi and associate director Rob Hinckley.
"These properties represent some of the best located and mostly highly sought after in the suburban New York market, most of which have been owned and/or developed by Kleban for more than 50 years," said Rizzi. "This was a generational opportunity, and while only offered to a highly targeted `off market` group of investors coordinated between HFF and Kleban, there was tremendous interest."

Rizzi added, "The relationship between Kleban and Regency clicked almost immediately, which greatly contributed to Regency`s selection as a venture partner, and was strengthened through the complex acquisition process setting the ground work for what we believe will be a very successful partnership."

Kleban Properties is a Connecticut-based real estate development company with holdings throughout the U.S. in states including Vermont, South Carolina, Alabama, Louisiana and Florida. Kleban owns and manages its own portfolio including more than 10 centers in Fairfield, Connecticut, where its commitment to continued growth is strongest, and where it intends to further invest with Regency where opportunities are presented.

Regency is the preeminent national owner, operator, and developer of high quality grocery-anchored and community shopping centers. At December 31, 2013, the company owned 328 retail properties, including those held in co-investment partnerships. Including retailer-owned square footage, the portfolio encompassed 43.3 million square feet located in top markets throughout the United States. Since 2000, Regency has developed 214 shopping centers, including those currently in-process, representing an investment at completion of more than $3 billion. Operating as a fully integrated real estate company, Regency is a qualified real estate investment trust that is self-administered and self-managed.

HFF (Holliday Fenoglio Fowler, L.P.) and HFFS (HFF Securities L.P.) are owned by HFF, Inc. (HF).  HFF operates out of 22 offices nationwide and is a leading provider of commercial real estate and capital markets services to the U.S. commercial real estate industry. HFF together with its affiliate HFFS offer clients a fully integrated national capital markets platform including debt placement, investment sales, equity placement, advisory services, loan sales and commercial loan servicing.  For more information please visit www.hfflp.com or follow HFF on Twitter at www.twitter.com/hff.

HFF Managing Director
(212) 245-2425

HFF Associate Director, Marketing
(617) 338-0990

This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.

The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: HFF, Inc. via GlobeNewswire