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Burnham Retail Advisory Group negotiates $412 million sale of retail portfolio

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Fallbrook Mercantile Center, a 74,409-square-foot retail center located on South Main Street in Fallbrook, a San Diego County community, is one of 16 West Coast retail properties that were sold in a $412,095,604 portfolio transaction handled by Burnham Real Estate's Retail Advisory Group. The transaction represents the Burnham group's largest sale yet and is contributing to a record year in which its total sales and lease volume will exceed $590.9 million.

The retail centers, which are located in California, Nevada, Oregon and Washington, were sold to Weingarten Realty Investors (NYSE: WRI) of Houston, Texas, and BlackRock Realty of Florham Park, N.J.

"The sale of this portfolio represents one of the largest retail transactions of its kind this year and reflects the strong demand by institutional investors for quality assets in established growth markets," said Pete Bethea, senior vice president and principal with the Burnham Retail Advisory Group.

Weingarten, one of the largest real estate investment trust companies listed on the New York Stock Exchange with over 300 properties and 40 million square feet, purchased seven centers totaling 861,000 square feet for a combined price $189,445,604. Four of the centers are located in Washington, two in Oregon and one in Nevada.

BlackRock Realty, the real estate investment arm of BlackRock Inc. , manages $8 billion in U.S. real estate assets for a premier roster of institutional investors. It purchased nine centers totaling 833,000 square feet in the Barclays portfolio (eight in California and one in Nevada) for a total price of $222,650,000.

According to Bethea, the sold properties represent the multi-tenant retail assets managed by Barclays' Realty & Management Co.'s portfolio. The family-owned company, founded by Ruben Poplawski in 1972, is located in Beverly Hills, Calif. In addition to owning and managing strategic retail assets throughout the West, the company has also developed more than 350,000 square feet of commercial space as well as 961 apartments and condominiums in California and Nevada.

"This was a tremendous opportunity for us to take advantage of a strong seller's market," said Poplawski. "This was a complex process that included 16 separate loan assumptions in what, looking back, was a very volatile time in our financial markets. Pricing held, a true testament to both Burnham and our buyers. Burnham handled the process seamlessly and professionally. I look forward to more business with them, although admittedly, my eye is toward more passive interest."

Bethea founded the Retail Advisory Group to provide institutional and private investors with forward-thinking strategic planning and marketing services. Over the past three years, the team has completed more than $1 billion in retail sales and leasing volume, ranking it among the most active retail brokerage and advisory firms in the west.

Burnham Real Estate * ONCOR International provides comprehensive real estate services to clients throughout the southwestern United States. Headquartered in San Diego, the company has five regional offices in Southern California and one in Las Vegas. Company services include traditional brokerage along with corporate services, asset services, capital markets, advisory services, strategic corporate consulting and project management. The Burnham Web address is www.burnhamrealestate.com.

Submitted by Burnham Real Estate

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