Excel Trust Inc. has entered into a joint-venture agreement with Chicago-based GEM Realty Capital Inc. to redevelop La Costa Towne Center in Carlsbad, which Excel purchased earlier this year for approximately $23.5 million.
Financial terms of the agreement, and other details on development plans for the retail center, were not disclosed in a statement from San Diego-based Excel Trust.
Excel Chairman and CEO Gary Sabin said the development financing arrangement will allow the company to “diversify our capital and grow our platform” while enhancing return on shareholder equity regardless of stock market conditions.
“Our acquisition pipeline is strong, and we will continue to evaluate our capital raising options in both the public and private markets,” Sabin said in the statement.
Excel purchased the 121,000-square-foot La Costa Towne Center in February. It is located at 7710 El Camino Real.
Vons is the anchor tenant, with a lease in effect, although the grocer is no longer occupying the space. Excel officials said at the time of the acquisition that the property “presents an opportunity to re-tenant and redevelop portions of the center to create additional value.”
Excel Trust is a retail-focused real estate investment trust with headquarters in Rancho Bernardo. It trades under the symbol EXL on the New York Stock Exchange.
GEM Realty Capital invests in private-market real estate assets and publicly traded real estate securities through two lines of business, known as GEM Realty Properties and GEM Realty Securities, the statement said.