Founded in 1957, the International Council of Shopping Centers (ICSC) is the premier global trade association of the shopping center industry. Its more than 60,000 members in over 90 countries include shopping center owners, developers, managers, marketing specialists, investors, retailers and brokers, as well as academics and public officials. As the global industry trade association, ICSC links with more than 25 national and regional shopping center councils throughout the world. This year, the Western Division Conference kicked off Wednesday in San Diego.

We’ll be covering news from the conference each day as reported to us by news releases and attendees.

Announcements from the ICSC Conference on Sept. 18, 2013 DAY ONE:

Westfield sells 7 malls to Starwood for $1.64 billion
San Diego, Sept. 18, 2013 – Australia-based Westfield Group will sell seven U.S. malls totaling 7.9 million square feet to a Starwood Capital Group affiliate for $1.64 billion. Starwood will own and manage the majority interest in the centers with Westfield retaining a 10% common equity interest. The assets include the 826,140-square-foot Westfield Belden Village, in Canton, OH; the 779,268-square-foot Westfield Capital, in Olympia, WA.; the 1.2 million-square-foot Westfield Franklin Park, in Toledo, OH; the 1.1 million-square-foot Westfield Great Northern, in North Olmsted, OH; the 1.3 million-square-foot Westfield Parkway, in El Cajon, CA.; the 1.3 million-square-foot Westfield Southlake, in Merrillville, IN.; and the 1.1 million-square-foot Westfield West Covina, CA.

“We are focused on redeploying our capital into superior retail destinations in major cities through divesting non-core assets and introducing joint venture partners into our high quality portfolio of assets,” said Westfield Group Co-CEO Peter Lowy, in a press release. After the transactions close in the fourth quarter 2013, Westfield will own and operate 40 centers in the U.S.

Marcus & Millichap predict California vacancy levels falling fast
San Diego, Sept. 18, 2013 – A rebounding housing market is boosting the retail outlook in California, according to attendees at the ICSC Western Division Conference. San Diego, site of the conference, is at the forefront of the state’s retail recovery. Developers are starting to build again to accommodate expansion-minded retailers that are having trouble finding locations, locals say. According to Marcus & Millichap, retail stock in San Diego will grow by nearly 1% with the addition of about 800,000-square-feet of new space.

Despite the new construction, Marcus & Millichap is expecting that San Diego’s retail vacancy level will ease by an additional 70 basis points year-on-year, to 3.6%, for 2013. In Los Angeles Marcus & Millichap is projecting that vacancy will be about 5.8% for this year, the lowest since 2008 and a 50-basis-point improvement over 2012. An increase in blue-collar jobs is expected to spur even more improvement as retailers serving that population move into empty spaces at strip centers in the city’s outlying communities, according to the firm. Vacancy levels are easing also in the East Bay Area. Marcus & Millichap says vacancy levels there will probably dip below 6% for the first time since 2008, thanks to demand from expanding retailers and a reduction in new development. In Sacramento, meanwhile, job growth is outpacing the nation’s average and is set to help push the market’s retail vacancy level down 90 basis points year on year, to 8.7%, for 2013, Marcus & Millichap reports.

Home sales are up by some 15% from a year ago in Orange County, driving shoppers into stores for big-ticket purchases. Retail sales there surpassed prerecession levels at the beginning of 2012 and are set to balloon to some 20% above the recessionary trough by the end of this year, says Marcus & Millichap. In the fourth quarter of 2012, the Orange County retail market absorbed some 730,150 square feet, the largest increase since 2007, reports Jerry Holdner, vice president of market research at Voit Real Estate Services, in Newport Beach. “Another 68,621-square-feet was absorbed in the first quarter,” said Holdner. The Orange County vacancy rate at the end of the first quarter was 5.53%, down from 5.9% for the year-ago quarter, according to Holdner. “As job growth expands, the retail market will continue to recover,” Holdner said. “I wouldn’t be surprised if the vacancy rate gets down to 5% within the next 12 months.”

Wash Depot Holdings, Inc. of Malden, MA dba Simoniz Car Wash is selling a portfolio of 30 car washes of the company’s 80 total properties. Twenty of these have sold or are under contract within the one month of coming on the market; properties are located in AZ, TN, TX, GA, MN, MO, IA, IL and FL.

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[mepr-show rules=”58038″]Mister Car Wash of Tucson (Ron Peterson, Chairman) acquired two Simoniz locations and businesses from Wash Depot at 4941 N Oracle Rd in Tucson for $2 million ($430 PSF) and 2409 N Kolb Road in Tucson for $832,000 ($126 PSF).

“This deal is going to strengthen our position in Tucson and allow us to better serve a very strategic market for us” said Peterson in a press release. Mister Car Wash now operates six carwashes in Tucson and 123 carwashes nationwide. Mister Car Wash has added 21 locations in 2013. It was Mister Car Wash that also acquired the four local Capin car washes last year, making Mister the largest car wash owner in the country based here in Tucson.

The third Simoniz location was at 3410 N 1st Avenue in Tucson. It sold to UC Associates, LLC of Tucson dba Octopus Car Wash  for $425,000 ($192 PSF). This will be car wash number four for Octopus in Tucson.

Vinny Carfora with Car Wash King of Florida is a licensed real estate broker in 38 states. In an exclusive interview with the editor of Real Estate Daily News, Carfora  told us he is marketing the Wash Depot portfolio and represented seller and both buyers in these transactions. Carfora told us there are three other properties as part of the portfolio in Tucson and one in Phoenix, of these, two are under contract and expected to close at the end of month. Carfora also handled the sale of the four Capin properties last year.

For more information contact Carfora at (954) 540-3330 or at visit www.carwashking.com

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4941 N Oracle: sale date: 9/12/2013. APN: 105-08-014E, lot size 66,706 SF. All cash transaction. 2409 N Kolb: sale date 9/12/2013, APN: 135-10-150X and 150W, lot size 32,094 SF. All cash transaction. 3410 N 1st Ave: sale date: 9/11/2013. APN: 13-04-227 thru 229 and 230 and 231. Lots size was 30,208 SF. All cash transaction.[/mepr-show]

Reems and Greenway, LLC of Phoenix (Matthew Widdows, managing member) purchased a 16-unit office condo portfolio located at 15515-15571 N Reems Road in Surprise, AZ for $1.35 million ($56 PSF).

The bank owned property consisted of a mixture of shell and built-out condo units that totaled approximately 24,101 square feet.

“The transaction turned out to be a win-win for both buyer and seller,” said Justin Horwitz of Sperry Van Ness in Phoenix. “This sale put the Offices at Reems back on track to being a vibrant and desirable office condo project in the West Valley.”

The seller, Pacific Western Bank, was represented by Justin Horwitz, Nicole Ridbreg and Neil Sherman of Sperry Van Ness, LLC of Phoenix. Steve Cook of Escee Properties in Phoenix represented the investor.

The Sperry Van Ness Team should be reached at (480) 425-5500. Cook can be contacted at (480) 505-0919.