Seritage Growth Properties and Invesco Real Estate, a global real estate investment manager, recently revealed a joint venture partnership to own The Collection at UTC, the adaptive re-use of the existing Sears store and auto center at Westfield UTC in La Jolla, CA.
The transaction values The Collection at UTC at approximately $165 million, including costs remaining to complete the project. Seritage sold a 50% interest in the project to a separate account managed by Invesco and received proceeds of approximately $44 million at closing, which it utilized primarily to repay existing mortgage debt associated with the property.
According to a prepared statement, the partnership will invest, or pursue construction financing to fund, the additional capital required to convert the Sears store and auto center into 226,200 square feet of premium space leased to a collection of growing retailers and leading dining, entertainment and fitness concepts.
“We are excited to expand our valued partnership with Invesco to create an upscale shopping, entertainment and dining experience at one of our premier assets, The Collection at UTC, located in La Jolla, California,” says Benjamin Schall, President and Chief Executive Officer of Seritage Growth Properties. “We continue to utilize these types of partnerships to realize immediate value for Seritage shareholders, repay existing mortgage debt, and retain the significant longer-term benefit as the redevelopments are completed.”
Seritage Growth Properties is a publicly-traded, self-administered and self-managed REIT with 225 wholly-owned properties and 24 joint venture properties totaling approximately 39 million square feet of space across 49 states and Puerto Rico.