Local developer Louis Cappelli has sold a majority interest in one of his most high-profile properties in downtown White Plains – the 35-story City Center.
The new owner of the complex, which is a mix of retail and luxury apartments, is Inland Diversified Real Estate Trust, Inc.
It was not disclosed how much of an interest Inland has acquired, but it was more than 51 percent, said Jeffrey Dunne of CBRE Group Inc.’s New York Institutional Group. Along with CBRE officials Steven Bardsley and David Gavin, Dunne represented Cappelli’s entities - LC White Plains Retail, LLC, and LC White Plains Recreation, LLC – in the deal.
Under the terms of the venture, the City Center was valued at a total of $166.4 million, making a majority interest worth at least half of that amount. It was built in 2003 for more than $300 million.
Today, the 381,905-square-foot site is fully leased by a variety of tenants, including ShopRite Supermarkets, Nordstrom Rack, a 15-screen National Amusements movie theater, Barnes & Noble and New York Sports Club.
There is also a lease in place to bring Toys ‘R Us to the City Center in March, CBRE confirmed.
The sale included 99-year air rights over the parking garage, which houses the New York Sports Club and 24 fully leased, in-demand residential apartment units.
The center is shadow-anchored by a 154,241-square-foot Target P-Fresh store, which was not included in the sale.
“City Center will provide the new partnership with stable in-place income due to anchor tenants’ long-term leases, while providing upside through contractual rent increases,” Dunne said in a press release. “The significant foot traffic generated as a result of ShopRite opening last year will be further enhanced by Toys ‘R Us opening at the center in the spring of 2013.”