A joint venture led by global real estate investment management firm AEW Capital Management has purchased a majority stake in a Dallas-Fort Worth area shopping mall.
A statement from AEW reveals that its partnership with Chicago-based real estate company M&J Wilkow has provided fresh equity and assumed existing debt in exchange for becoming majority owners of Arlington Highlands, a 737,000-square-foot shopping center. Under the terms of the deal, the AEW-led venture will own the asset along with existing owners The Retail Connection and Cheney Mathes, who now become minority stakeholders.
Although the financial terms of the transaction were not disclosed, data provider Real Capital Analytics lists the purchase price at $194.3 million. AEW formed the joint venture on behalf of its open-ended core real estate fund, AEW Core Property Trust US.
AEW director George Fryer said in a statement: “The recapitalization will allow the ownership to continue to enhance the existing shopping center and provide additional capital for future improvements.”
Originally completed in 2007 by Dallas-based Retail Connection and Cheney Mathes, the asset is located at the corner of Interstate 20 and Matlock Road in Arlington, Texas, midway between Dallas and Fort Worth. The property currently is 95 percent leased to tenants that include such retailers as Bed Bath & Beyond, PetSmart, Ann Taylor Loft, PF Chang’s and Ethan Allen.
The Retail Connection’s property management division, Connected Management Services, will continue to oversee property management and marketing, while its brokerage group will continue to provide leasing and advisory services.