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Lubert-Adler in $336m shopping center exit

The Philadelphia-based real estate firm has closed two separate transactions, selling retail centers to AEW and Starwood.

Philadelphia-based real estate investment firm Lubert-Adler Partners has sold two suburban shopping centers for a total of $336 million. Forum Peachtree Parkway, located outside of Atlanta, sold for $150 million to AEW Capital Management, while Hamburg Pavilion, located in Lexington, Kentucky, sold for $186 million to Starwood Capital Group.  

In 2008, Lubert-Adler made equity and debt investments in the centers, which were developed by Thomas Enterprises. At the time, Lubert-Adler also invested in the 265,000-square-foot Forum Carlsbad in Carlsbad, California developed by Thomas. That center was acquired by TIAA-CREF in 2011 for approximately $180 million.

“All three of these retail centers have made a comeback with the economic recovery, but they also have potential for the new owners, given the strong demand and relative lack of retail supply in their submarkets,” said Lubert-Adler co-founder and chief executive Dean Adler in a statement.

Forum at Peachtree Parkway, a 500,000-square-foot lifestyle center in Norcross, Georgia, opened in 2002. It is fully leased to such tenants as Trader Joe’s, HomeGoods, Ann Taylor, Barnes & Noble and  J. Crew.

Hamburg Pavilion, which opened in 2000, is comprised of more than one million square feet of retail space. Most of the space is leased to big-box format stores, including Kohl’s, Marshalls, Dick’s Sporting Goods, PetSmart and DSW.

“As with our investments in multifamily, mixed-use and other property types, our retail strategy focuses on deploying capital to create strong cash-flowing rental assets with experienced operators who possess superior knowledge and local market expertise,” Adler added.

Lubert-Adler currently is fundraising for its latest opportunistic real estate offering, Lubert-Adler Real Estate Fund VII. The vehicle, which is targeting $500 million in equity commitments, held an interim close in April on $212.5 million. Fund VII will focus on investing in middle-market retail, multifamily, hotel and industrial assets exclusively in the US through joint ventures with operating partners.