First Washington Realty Acquires Donahue Schriber Realty Group
Bethesda, Maryland and Costa Mesa, California — Bethesda-based commercial real estate owner First Washington Realty (FWR) has purchased Donahue Schriber Realty Group Inc., a Costa Mesa-based mall owner. An affiliate of FWR has acquired the private retail REIT and its portfolio of grocery store-anchored outdoor centers from institutional investors advised by JP Morgan Global Alternatives.
The transaction adds 47 shopping centers, as well as an office building owned by DSRG, for a total of 6 million square feet to FWR’s holdings. The sale price was not disclosed, but Bloomberg reported in February that the deal negotiations valued DSRG and its assets at more than $3 billion.
The outlet also reports that the California Public Employees Retirement System (CalPERS) was a financial partner of FWR in the deal and that JPMorgan Asset Management and the New York State Teachers’ Retirement System ( NYSTRS) were among DSRG’s largest investors.
For FWR, the agreement expands its presence on the West Coast, including key markets such as the Bay Area, Orange County, Seattle, Portland, San Diego and Sacramento. The agreement also expands FWR’s corporate base on the West Coast, as its management team now oversees DSRG’s existing offices in Orange County, San Diego, Portland and Sacramento. According to sources familiar with the deal, FWR has been looking for a merger opportunity with DSRG for years.
“We are excited to purchase these grocery-anchored centers and hire some great new colleagues, who together with our portfolio and existing employees will create the leading private outdoor retail platform in the United States. “said Alex Nyhan, CEO. from FWR.
The combined company now operates as First Washington Realty and owns and operates more than 150 outdoor community and neighborhood centers covering more than 20 million square feet. The portfolio, which is home to 3,600 tenants in 22 states and Washington, DC, is reportedly valued at $8.9 billion.
DLA Piper LLP served as FWR’s lead counsel and Goodwin Procter LLP served as DSRG’s counsel for the merger. Eastdil Secured was DSRG’s exclusive financial advisor.
— John Nelson