Starwood Property Trust To Acquire Fundamental Income Properties in $2.2B Net Lease Deal
Starwood Property Trust announced on July 16 that it has agreed to acquire net lease real estate platform Fundamental Income Properties for $2.2 billion. Both operate in the retail sector. Starwood Property Trust is affiliated with private investment firm Starwood Capital Group, while Fundamental is currently backed by Brookfield Asset Management. Fundamental’s portfolio spans 467 properties across 44 states, totaling 12 million square feet, and includes assets in the retail, restaurant and entertainment industries.
Starwood Property Trust, which manages a debt and equity portfolio of $27.5 billion, said the deal will solidify its position as a diversified REIT. The company noted that the deal enhances its capital deployment capabilities across asset classes and supports its ability to deliver attractive risk-adjusted returns through various market cycles. The deal is expected to close this month.
URW Secures $925M Refi for Westfield Century City
Westfield Century City mall in Los Angeles. Photo courtesy of Unibail-Rodamco-Westfield
Retail landlord Unibail-Rodamco-Westfield is refinancing its marquee Westfield Century City mall in Los Angeles with a $925 million fixed-rate, interest-only mortgage, according to Fitch Ratings. Proceeds from the refinancing package will pay off a $925 million commercial mortgage-backed securities loan that originated in 2023, Commercial Property Executive reported. The 2023 loan was set to mature in August, according to Yardi data cited by Commercial Property Executive. The nearly 1.4 million-square-foot outdoor mall — rated by Fitch Ratings as one of the West Coast’s top-performing retail centers — is home to more than 260 tenants, including Bloomingdale’s, Macy’s, Nordstrom, flagship Italian marketplace Eataly and an AMC movie theater. Last year, Chain Store Age ranked Westfield Century City as the country’s third-best retail center experience. URW bought the mall in 2002 for $165 million, according to Commercial Property Executive, and completed a $1 billion makeover in 2017, Fitch reported.
Federal Realty Plans $1B in Sales, Acquires Two Kansas Retail Centers
Town Center Crossing in Leawood, Kansas. Photo courtesy of Federal Realty Investment Trust
As part of its ongoing capital allocation strategy, Federal Realty Investment Trust has identified more than $1 billion worth of stabilized retail properties that it might shed. As of March 31, Federal Realty’s 103 properties comprised 27 million square feet of commercial space and about 3,100 residential units. The REIT said these sales reflect its ability to unlock value from mature properties and reallocate capital for opportunities with stronger long-term return potential.
In June, for example, Federal Realty closed on the $69-million sale of its 181,000-square-foot Hollywood Boulevard retail portfolio in Los Angeles. But shortly afterward it reinvested in growth, acquiring two open-air retail centers — Town Center Plaza and Town Center Crossing — in Leawood, Kansas, for $289 million. The properties total 550,000 square feet. “It’s important for our investors to know that we consider prudent capital allocation decisions to be at the very top of our list of responsibilities,” Federal Realty president and CEO Donald Wood said during the company’s first-quarter 2025 earnings call on May 8.
Space Investment Partners Buys Grocery-Anchored Fullerton Center for $118.5M
Fullerton Metrocenter in Orange County, California. Photo courtesy of Space Investment Partners
Real estate investment, development and management company Space Investment Partners has acquired a prized asset in today’s retail market, paying $118.5 million for Fullerton Metrocenter, a grocery-anchored shopping center in Fullerton, California. The buyer called it the highest-priced deal for an Orange County retail property in eight years. The 30-acre property spans 395,703 square feet and features more than 40 tenants, including Sprouts Farmers Market, Target and PetSmart. The center, built in 1988, is 97% leased. The seller was Kite Realty.
Space said it will refresh Fullerton Metrocenter with new paint, updated signage and enhanced landscaping, and aims to attract more food-and-beverage and fitness tenants to serve the surrounding community. “This center is in an outstanding top-tier Orange County location, which is why we were so excited about the acquisition,” said Space co-founder and managing partner Ryan Gallagher. “Fullerton Metrocenter fits well within our existing portfolio of Southern California retail assets.” With the Fullerton acquisition, the firm now owns eight retail and multifamily properties.
Bojangles To Add EV Charging Stations to Restaurants Starting Q4
Photo courtesy of Bojangles/Business Wire
While you’re digging into a Bojangles combo of fried chicken, a biscuit and sweet tea, you may soon be able to charge your electric vehicle at the same time. The restaurant chain said on Monday that it’s rolling out EV charging stations in the fourth quarter at select locations across its estimated 800-unit footprint. A broader rollout is planned for 2026, with at least four charging stations per restaurant. “These top-of-the-line EV chargers will not only improve accessibility for our guests but also help drive an eco-friendlier future,” said Bojangles chief investment officer Richard Del Valle. The chain’s partners in the project are Alyath, Energy and Environmental Design Services and Smart Big Box.
Monthly EV charging sessions at restaurants rose 17.5% from April 2024 to March 2025, according to the Q1 2025 Benchmark Report from the Transportation Energy Institute’s Charging Analytics Program. Fast-food locations saw a 7.4% increase during the same period.
Q2 Retail Real Estate Absorption Declines in Most Major Markets
Across dozens of major U.S. markets, the retail sector notched negative net absorption of 6.5 million square feet in the second quarter, according to a new report from Cushman & Wakefield Research. In fact, 56 of the 81 markets tracked saw net negative demand for retail space — marking the first time in the post-pandemic era that absorption has been negative for two consecutive quarters. The firm’s Q2 2025 U.S. Retail MarketBeat report did shed light on a few bright spots, though, noting that “the reversal in net demand is leading to easing pressure on asking rents.” Further, there were pockets of strength, including nine retail markets that experienced positive preliminary second-quarter net absorption above 100,000 square feet. Birmingham, Alabama, at 337,302 square feet, led the pack.
Source: Cushman & Wakefield Research
Westwood Financial Appoints KC Bills as CEO
Westwood Financial has named KC Bills as CEO, effective July 28. The privately held retail real estate firm owns more than 125 grocery-anchored and service-oriented centers, primarily in Sun Belt markets. Bills previously served as senior vice president and West portfolio president at Phillips Edison & Co., a REIT focused on grocery-anchored retail centers. In announcing the move, COO Lauren Ball and CFO Juyuan Wei said Bills’ arrival “marks an exciting new phase” for the company. Founder and co-chair Steve Fogel added that he “welcomes a new generation taking control of this chapter in Westwood’s evolution.”
By John Egan
Contributor, Commerce + Communities Today