DLC Announces Recapitalization and Refinancing of Spring Creek and Steele Crossing Shopping Centers in Partnership With Cohen & Steers

ELMSFORD, N.Y., June 14, 2024 (Newswire.com) - DLC, one of the nation’s largest private owners and operators of open-air shopping centers, has completed the recapitalization and refinancing of two prime retail properties in Northwest Arkansas, Spring Creek and Steele Crossing. This transaction, in partnership with an affiliate of Cohen & Steers Capital Management, Inc. (“Cohen & Steers”), underscores DLC’s commitment to driving exceptional returns and value creation for investors. The purchase price was $54.75MM with a $37MM loan from Arvest Bank. 

DLC has owned and managed this portfolio since 2014 for just under 10 years and knows well the high growth potential of the Fayetteville market. 

Key Highlights of the Deal:

• DLC drove significant NOI growth during the initial ownership phase and this portfolio is poised to continue this success under the new ownership.
• DLC forged a new capital partnership with Cohen & Steers, a leading global investment manager, leveraging their expertise and resources in this dynamic market.
• DLC leverages its size and expertise to successfully invest across markets, consistently generating outsized returns, including in fast-growing markets like Northwest Arkansas.
• DLC’s best in class team has the pivotal expertise and experience to execute these types of deals. Not only in raising appropriate capital, but also ensuring the successful completion and operation of such projects.

Adam Ifshin, DLC's CEO and Founder, said, "Our track record of exceptional returns is a testament to our robust value creation platform and in-house expertise. We have a proven ability to deploy capital at scale, making our investments attractive to institutions. At DLC, we secure opportunities that others can't find, and this recapitalization and refinancing is a prime example of our strategy in action."

These open-air centers are less than one mile apart and are in Fayetteville’s primary retail corridor near the corporate headquarters of Walmart, J.B. Hunt, and Tyson Foods, as well as the University of Arkansas (32,000+ students). 

Portfolio Details:

Spring Creek

• GLA: 588,606 SF
• Anchors: Walmart, The Home Depot, Best Buy, T.J. Maxx, and Ross Dress for Less
• Co-Tenants: Old Navy, Ulta Beauty, David's Bridal, Jo-Ann Fabrics, Dollar Tree, and Shoe Carnival
• Intersection of Joyce Boulevard and College Avenue with 65,000 VPD

Steele Crossing

• GLA: 261,665 SF
• Anchors: Target, Kohl's, and PetSmart
• Great visibility from Fulbright Expressway (U.S. Hwy 71) with 43,000 VPD

Ifshin added, “These recapitalization and refinancing efforts highlight DLC’s strategic financial acumen and our ability to capitalize on high-potential markets. With a solid foundation and forward-looking vision, we continue to secure and enhance value for all of our stakeholders.”

“Northwest Arkansas has displayed strong growth in recent years and is home to three Fortune 500 Companies and the University of Arkansas,” said James S. Corl, Head of the Private Real Estate Group at Cohen & Steers. “Similar to many Sunbelt cities, Fayetteville is benefiting from national migration trends as people move to more affordable and economically attractive residential areas across the country. We believe the shopping centers are well-positioned in a dominant location to benefit from these tailwinds and we are excited to partner with DLC.”

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Source: DLC