Weingarten Realty Investors, a Houston-based owner, manager and developer of shopping centers, is preparing to sell its industrial portfolio – which includes seven properties in Memphis – to New York-based DRA Advisors LLC for $382.4 million.
The portfolio is made up of 52 industrial properties, totaling 9.6 million square feet in Florida, Georgia, Tennessee, Texas and Virginia.
Weingarten Realty currently owns eight Memphis industrial buildings, all of which are managed by Brad Murchison of CB Richard Ellis Memphis. However, Southpoint I (4715 Shelby Drive) and Southpoint II (4655 Shelby Drive) are the only two properties being sold. The others are owned by Weingarten in a partnership.
Weingarten plans to use proceeds from the transaction to pay down amounts outstanding under its revolving credit facility and repay a $200 million unsecured term loan, “resulting in a further strengthening of the company’s balance sheet and providing additional capacity to fund growth opportunities in its core retail markets,” according to a Wednesday, April 11 statement.
Weingarten in Memphis owns six retail centers: Bartlett Towne Center, Highland Square, Mendenhall Commons, Ridgeway Trace Center, Summer Center and The Commons at Dexter Lake.
DRA Advisors in Memphis owns two office properties – Germantown Center and Mid-Memphis Tower – as well as four multifamily assets – Addison at Collierville, Bailey Creek, Madison at Schilling Farms and Preserve at Southwind.
Closing of the transaction is expected to occur within the next 45 to 60 days. J.P. Morgan Securities LLC served as financial advisor to Weingarten on the sale.