The Development Partnerships group at DDR is searching for joint venture development opportunities where it can provide capital and leverage existing retail relationships. The group focuses on fully entitled projects that maintain a healthy leasing interest from national tenants. Ideal joint venture partners have local market expertise and prior shopping center development success.
Successful joint ventures with the Development Partnerships group typically meet the following conditions:
- The project is “under control” by the development partner (i.e., holds fee title or controls pursuant to an underlying purchase agreement).
- Entitlements for the development are complete and all major approvals have been obtained.
- No critical due diligence items are outstanding (i.e., access, environmental, title, utilities, storm water, etc.).
- National retailers have shown interest in the development.
DDR is a fully-integrated Real Estate Investment Trust with over 50 years of shopping center development experience. A wide array of support can be offered to joint venture partners, including leverage of DDR’s national leasing platform and access to capital markets.
- Access to Capital: DDR maintains access to multiple lines of credit and benefits from low construction interest rates. Utilization of DDR’s low cost of debt can benefit the returns for all partners. In some projects, DDR is willing to guarantee the construction financing to further mitigate the partner’s exposure to liability.
- National Tenant Relationships: DDR enjoys strong relationships at the highest levels with all of the national retailers and brokers involved in power center developments around the country. With DDR as a partner, the joint venture will have the luxury of leveraging these relationships to help complete a project’s leasing plan.
- Dedicated Resources: DDR has established and experienced professionals with expertise in Development, Construction, Tenant Coordination, Leasing, Market Research, Legal and Property Management. All of these in-house departments are at the disposal of DDR’s development partners. With entitlements and all due diligence items complete, DDR’s development and construction teams can act as a consultant or the lead developer depending on the needs of the partner.
- Flexible Joint Venture Structures: DDR maintains substantial flexibility with any potential joint venture structure. The company is able to be very creative and open to any partner’s specific project requests.
- Partners for the Long-Term: DDR is a long-term holder and seeks a lasting relationship with its partners that encompasses multiple, mutually beneficial projects.
Belgate Shopping Center (Charlotte, NC)
Belgate Shopping Center is an 890,000 sf retail property located in Charlotte, NC. The Development Partnerships team partnered with Redstone Investments, a regional developer based in Tampa, in June 2012 after entitlements were complete and a significant amount of lease-up had occurred. The center is anchored by IKEA, Wal-Mart, and a 170,000 sf power center featuring Hobby Lobby, Marshalls, Old Navy, Petco, ULTA, Shoe Carnival, and Cost Plus World Market. The IKEA and Wal-Mart are already open and the junior anchor portion of the power center is 100% leased and under construction with a planned opening in June 2013. For more information on Belgate, please click here.