Kroger said Friday that it will close its North Raleigh store in the Wakefield Commons shopping center this summer because the location failed to meet sales expectations.
The announcement comes a week after Wakefield Commons was sold by Centro Properties Group, a debt-laden Australian mall owner that is selling its U.S. assets.
The center's new owner is Westdale Real Estate Investment and Management, a private firm based in Dallas. Westdale said in a release that it acquired the property from a distressed owner for a "significant discount" and plans to improve the tenant mix to better serve affluent customers in the area.
Wakefield Commons includes 160,949 square feet of retail space.
In addition to Kroger, Wakefield Commons' other anchor tenant is a 12-screen Marquee Cinemas.
The Kroger store's operating results do not justify keeping it open, Jay Cummings, president of Kroger Mid-Atlantic, said in a statement.
Kroger said the sale of Wakefield Commons had nothing to do with the decision to close the store July 9. The location is near both a Harris Teeter and a Walmart Supercenter.
The Kroger store employs 88 people, 27 of whom are part-time. They will be offered jobs at other stores in the market. After the closure, Kroger will operate 16 stores in the Triangle.
Centro borrowed $21 million in 2006 to acquire Wakefield Commons, according to Wake County property records. The loan was then bundled and sold on Wall Street as part of a commercial mortgage-backed security.
Westdale assumed the remaining debt on the property. The company didn't disclose the purchase price.
Centro is selling the bulk of its U.S. assets to the private equity firm The Blackstone Group for $9.4 billion. The deal, announced earlier this year, was viewed as a sign that investors think commercial real estate values are poised to rebound.
Centro still owns 23 properties in North Carolina, including Devonshire Place in Cary.
Westdale, which has more than $2 billion in real estate in its portfolio, has been buying properties around the country from distressed owners. The company completed more than $200 million in transactions during the first three months of the year.
"We are seeing tremendous opportunities to acquire properties and distressed debt at attractive valuations," Joe Beard, Westdale's founder, said in a release.
The announcement comes a week after Wakefield Commons was sold by Centro Properties Group, a debt-laden Australian mall owner that is selling its U.S. assets.
The center's new owner is Westdale Real Estate Investment and Management, a private firm based in Dallas. Westdale said in a release that it acquired the property from a distressed owner for a "significant discount" and plans to improve the tenant mix to better serve affluent customers in the area.
Wakefield Commons includes 160,949 square feet of retail space.
In addition to Kroger, Wakefield Commons' other anchor tenant is a 12-screen Marquee Cinemas.
The Kroger store's operating results do not justify keeping it open, Jay Cummings, president of Kroger Mid-Atlantic, said in a statement.
Kroger said the sale of Wakefield Commons had nothing to do with the decision to close the store July 9. The location is near both a Harris Teeter and a Walmart Supercenter.
The Kroger store employs 88 people, 27 of whom are part-time. They will be offered jobs at other stores in the market. After the closure, Kroger will operate 16 stores in the Triangle.
Centro borrowed $21 million in 2006 to acquire Wakefield Commons, according to Wake County property records. The loan was then bundled and sold on Wall Street as part of a commercial mortgage-backed security.
Westdale assumed the remaining debt on the property. The company didn't disclose the purchase price.
Centro still owns 23 properties in North Carolina, including Devonshire Place in Cary.
Westdale, which has more than $2 billion in real estate in its portfolio, has been buying properties around the country from distressed owners. The company completed more than $200 million in transactions during the first three months of the year.
"We are seeing tremendous opportunities to acquire properties and distressed debt at attractive valuations," Joe Beard, Westdale's founder, said in a release.
