Pegasus Investments Arranges Record Sale Of Water Tower Place In Des Moines, Marking 2nd Highest Price Ever Paid For A Shopping Center In Iowa History

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Pegasus Investments Real Estate Advisory Inc.

Jul 31, 2019, 11:17 ET

LOS ANGELES, July 31, 2019 /PRNewswire/ -- Pegasus Investments Real Estate Advisory Inc. ("Pegasus Investments") is pleased to announce the recent sale of Water Tower Place ("WTP") in Des Moines, Iowa. The sale represents the largest shopping center transaction in the history of Des Moines and the 2^nd largest sale in the history of the state of Iowa. The seller, a locally based private partnership which had owned WTP since it was built in 1994, exclusively retained Pegasus Investments to conduct the sale process. The purchaser was a California based family office with extensive experience acquiring and managing trophy quality, grocery anchored shopping centers throughout the United States.

Anchored by the only Whole Foods Market in the state, WTP measures over 270,000 SF and was 100% leased at the time of sale to an impressive roster of national retailers which include Ross, Marshall's, ULTA, Best Buy, Cost Plus World Market, Five Below, buybuy Baby, Office Depot and Guitar Center. "There are a few markets we consider to be 'sleeper' markets. Basically, these are markets that should be on every national investor's radar due to their phenomenal demographic, employment and real estate fundamentals but for some reason or another have yet to make the mainstream lists. Without a doubt, Des Moines is near the top of that list," explained David Chasin, Managing Director of Pegasus Investments. "For example, Des Moines is the fastest growing metro in the Midwest, it has the 2^nd lowest unemployment rate in the U.S., has experienced 42% population since 2000, and boasts $100,000 average annual household incomes [West Des Moines]," Chasin added.

The sale of WTP also underscores a recurring trend of west coast capital pursuing institutional quality shopping centers in the Midwest. "Properties like Water Tower Place truly come around once in a generation," explained Kevin Shelburn, Senior Vice President at Pegasus Investments. "This was the first time the property had ever traded hands in its 25 year history, and likely won't be offered for sale again in the foreseeable future. The buyer recognized this extremely rare acquisition opportunity and paid a price reflective of its stature as the most dominant center in the market," Shelburn added. The purchaser acquired WTP on an all cash basis and plans to add it to its portfolio of other high quality shopping centers.

"In an environment where every investor is asking itself what the future of retail will look like, few assets offer the track record and performance of Water Tower Place," explained Brad Kritzer, Managing Director at Pegasus Investments. "There were several key tenant bankruptcies in Water Tower's history which show how resilient the property and market have been. When Best Buy was shrinking many of its stores, the landlord was able to capitalize by bringing in the first Whole Foods in the state of Iowa. When Borders Bookstore shuttered all of its stores, buybuy Baby backfilled the entire vacancy which significantly improved the profile of the shopper. Finally, when Sports Authority failed, the landlord replaced them with Ross, ULTA and Five Below. These key events go a long way in demonstrating that certain properties in certain markets will likely stand the test of time," Kritzer added.

Pegasus Investments, Pegasus Capital Markets, and Pegasus Asset Management (collectively "Pegasus") advises its clients in the purchase and sale, financing, and management of high quality investment real estate nationally. Based in Los Angeles, Pegasus leverages its 30 year track record and highly specialized, fully integrated platform to deliver unparalleled results for its clients which include high net worth families, institutional investors and commercial real estate developers. The Pegasus team responsible for the sale of Water Tower Place was led by David Chasin, Kevin Shelburn, Bradley Kritzer, Daylin Ackerman, Tony Veiller and Stephen Apfel. For more information please visit www.pegasusinvestments.com or call (310) 691-1350.

SOURCE Pegasus Investments Real Estate Advisory Inc.