Investec Raises $130 Million for Acquisition of West Coast Retail

Investec Raises $130 Million for Acquisition of West Coast Retail

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Investec Continues to Seek Grocery/Drug Anchored Centers

SANTA BARBARA, CALIF. – Investec, specializing in the acquisition, operation, management and leasing of retail properties in California, is pleased to announce the firm has raised $130 million for acquisition of grocery and drug anchored centers located in the coastal region of California. Investec currently owns and manages over two million square feet and $650 million of shopping centers in California.

According to Ken Slaught, Investec’s founder and president, “Investec will continue its focus on best-in-class neighborhood shopping centers, anchored by dominant grocers and pharmacies."

Slaught is a strong believer in California retail. “We have been investing exclusively in California retail since 1988, so we are not surprised by the recent 'flight to quality' into these very markets on which many of our competitors are now focusing," notes Slaught. "The coastal markets of California are home to some of the most desirable real estate demographics in the country with high barriers to entry. From San Diego to Northern California, our neighborhood shopping centers provide our investors with extremely strong, risk adjusted returns in all economic cycles.”

While experts disagree over the current health and prognosis of the commercial real estate market in general, and some segments of the retail sector in particular, Slaught prefers to look at the big picture. “Over time, I am convinced these coastal markets of California will continue to thrive as they have for over the past 20+ years. Our properties, and those we seek to acquire, satisfy essential demand in local markets for products and services offered by a mix of national and local retailers. Investec has done very well by sticking to this disciplined approach. Our investors have reaped the rewards," says Slaught.

In February 2010, Investec acquired a 100,000-square-foot Ralphs and CVS/pharmacy anchored center, The Plaza at Sunbow in San Diego, for $21 million. In October 2009, Investec completed the development of Gene Autry Plaza, a new $17.5 million 60,000-square-foot shopping center in Palm Springs, Calif., and celebrated the grand opening of the first ground-up Smart & Final Extra! store in California. The center also includes Staples and 11,500 square feet of shop space.

Investec’s Director of Acquisitions Grant Harris reports that Investec is currently negotiating the acquisition of two retail properties and is actively seeking additional opportunities. “Our ability to efficiently execute property investigations and close quickly with 'all cash' provides Investec with a significant advantage over most other buyers, while at the same time providing sellers with transaction confidentiality and surety of execution,” Harris adds.

For more information about Investec’s acquisition criteria, please contact Grant Harris at 805-962-8989 x343 or grant@investecre.com.

ABOUT INVESTEC

Since its inception in 1983, Investec has handled more than one billion dollars in real estate transactions. Having thrived in one of the nation’s most competitive real estate markets for more than 27 years, Investec remains ideally positioned for continued growth in this dynamic and challenging industry during turbulent economic times. Investec’s current portfolio includes more than three million square feet of commercial properties under management in California including shopping centers, office buildings and self-storage facilities. Investec’s acquisition and development strategy is primarily focused on necessity-based, recession-resistant market/drug anchored neighborhood shopping centers. For more information, call 805.962.8989 x343 or visit www.investecre.com.

Investec Announces Acquisition of $21 Million Shopping Center The Plaza at Sunbow in San Diego
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Investec Continues to Seek Grocery Anchored Centers in California

SANTA BARBARA, CALIF. – Investec, specializing in the acquisition, development, management and leasing of retail properties in California, is pleased to announce its newest acquisition, The Plaza at Sunbow in San Diego, California. The 100,000-square-foot shopping center, which was purchased for approximately $21 million, is anchored by Ralphs and CVS, along with a host of national retailers including Starbucks, McDonald’s, KFC and T-Mobile. The transaction was sourced by Investec as an off-market acquisition opportunity from a private investor.

The Plaza at Sunbow was developed in 2002 by Kitchell Development in the suburbs of San Diego and has been the dominant neighborhood shopping center in its trade area. The center, which is 100 percent occupied, is situated on 11 acres at the northeast corner of Medical Center Drive and Palomar Street.

"We are always pleased when we can acquire quality assets like Sunbow, which provide us a quality center with a high performing grocer and pharmacy in strong in-fill markets," said Grant Harris, Investec's Director of Acquisitions. "Sunbow has performed very well since it was built, and we are confident it will continue to thrive with the quality and mix of tenants currently in place."

Harris said the addition of Sunbow brings Investec's retail portfolio to nearly 2,000,000 square feet of retail space in California, valued at over $620 million. Investec represented itself in the transaction, while the seller was advised by Mark Lucescu of Lucescu Realty.

According to Kenneth Slaught, President of Investec, "Contrary to the general gloom about retail real estate, not all retail real estate is the same. Much of the adverse retail press has been focused on discretionary retail or the woes affecting large niche chains. In contrast, all of our existing grocery anchor tenants have shown sales increases averaging 2.9 percent over the past 12 months. With the grocery and drug stores typically accounting for approximately 60 percent of the leasable area of our centers, we are confident that our gross sales increases will continue at all of our shopping centers."

Traffic and sales are increasing at Investec's necessity-based shopping centers as consumers return to basics by eating at home more often and by searching Investec’s discount retailers for bargains. "Knowing this type of real estate in California, particularly Coastal California, is performing well during this severe downturn has us excited about the future," Slaught stated. "We plan to continue buying the same type of properties in Coastal California, but during the next few years, we are going to have a once-in-a-generation opportunity to buy this exclusive asset class at below replacement cost."

In October 2009, Investec completed the development of Gene Autry Plaza, a new $17.5 million 60,000-square-foot shopping center in Palm Springs, Calif. and celebrated the grand opening of the first ground-up Smart & Final Extra! store in California. The center also includes Staples and 11,500 square feet of shop space.

For more information about Investec's acquisition criteria, please contact Grant Harris at 805-962-8989 x343 or grant@investecre.com.

ABOUT INVESTEC
Since its inception in 1983, Investec has handled more than one billion dollars in real estate transactions. Having thrived in one of the nation's most competitive real estate markets for more than 25 years, Investec remains ideally positioned for continued growth in this dynamic and challenging industry during turbulent economic times. Investec's current portfolio includes more than 2.5 million square feet of commercial properties under management in California including shopping centers, office buildings and self-storage facilities. Investec's acquisition and development strategy is primarily focused on necessity-based, recession-resistant market/drug anchored neighborhood shopping centers. For more information, call 805.962.8989 or visit www.investecre.com.