TIAA-CREF, APG JV surpasses $2bn

A partnership between the financial services company and the Dutch asset manager has purchased an interest in a Florida mall for $499 million, bringing the venture’s total value to roughly $2.4 billion.

A partnership between TIAA-CREF and APG has acquired a 49.9 percent stake in Tampa, Florida’s International Plaza from real estate investment trust Taubman Centers for $499 million. The purchase, which was funded with $337 million in cash and approximately $162 million in debt, brings the total value of the joint venture between the New York-based financial services company and the Dutch pension administrator to approximately $2.4 billion.
TIAA-CREF provided 51 percent of the capital for the deal, while APG provided the remaining 49 percent, according to the structure of the joint venture. Taubman, which will continue to own the remaining 50.1 percent stake in the complex, also will continue to lease and manage the property.
“The acquisition of an interest in this market-leading asset is a compelling addition to the super-regional mall portfolio that APG has assembled globally,” said Steven Hason, managing director and co-head of Americas real estate at APG, in a statement. “We look forward to participating in the ownership and continued success of International Plaza.”
The TIAA-CREF and APG partnership, which launched in October 2011, targets “dominant super-regional malls” located in major US markets through joint venture acquisitions with major mall operators. When first announced, the joint venture acquired interests in five mall properties totaling 4.6 million square feet and valued at more than $1.53 billion. Last quarter, APG purchased a 49 percent stake in TIAA-CREF’s 50 percent share of the Grand Canal Shoppes at The Venetian in Las Vegas, adding another $410 million to the venture’s portfolio, according to a source familiar with the situation. 
“TIAA-CREF continues to seek opportunities in regional retail properties with strong income streams as part of a well-diversified real estate portfolio,” said Phil McAndrews, managing director of TIAA-CREF, in a statement. 
International Plaza is located at the center of the Tampa metroplex, adjacent to the Tampa International Airport. The 1.2 million-square-foot center, which opened in September 2001, is anchored by such retailers as Dillard's, Neiman Marcus and Nordstrom. 
In addition to International Plaza and the Grand Canal Shoppes, the other properties in the joint venture’s portfolio include the Oak Park Mall in Overland Park, Kansas; the West County Center in St. Louis, Missouri; the Coolsprings Galleria in Nashville; the Pearland Town Center in Houston; and the Westfield Montgomery in Bethesda, Maryland.