| Century City Shopping Center and Marketplace |
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The Challenge |
CB Richard Ellis was hired by RREEF Funds to sell Century City Shopping Center and Marketplace, a 770,000-square-foot regional open-air retail and entertainment-themed mall. Located adjacent to Beverly Hills and Rodeo Drive, the center is in the top 1 percent of all shopping venues within the United States. In a market where properties of comparable size and quality often do not sell, achieving the best price was a major marketing challenge. On average, only 10 potential buyers may exist for a $250 million regional mall. These investors share information and perspective on asset pricing and have access to the same lenders and potential joint venture partners. |
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The Solution |
Using a comprehensive marketing campaign, CB Richard Ellis demonstrated how increased competition from high net worth individuals and offshore investors would affect the price. Offers during the first and second rounds were grouped together, and it was evident that value discussions had taken place among the bidders. After selecting five qualified buyers, we requested a last "sealed bid" advising them that the property would go to the highest bidder. The winner, Urban REIT, broke out of the pack and significantly outbid the others. This unique bidding process, in conjunction with the buyer's ability to show value enhancement, achieved a price that exceeded client expectations. It had the lowest average cap rate for a major retail sale in 1999. |
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