Principal Real Estate Investors and McCaffery Interests Enter Into Partnership
December 20, 2007 (Des Moines, Iowa) — Principal Real Estate Investors, one of the largest real estate investment firms in the United States, announced today that it has entered into a partnership with McCaffery Interests to acquire six shopping centers and an office building in the greater Washington, D.C., region.
The properties purchased are: Backlick, West Springfield and Alban Shopping Centers in Springfield, Va.; Spring Mall Office Building, next to the soon to be redeveloped Springfield Mall; Sterling and Sterling II Centers in Sterling, Va.; and Sacramento Center in Alexandria, Va.
"All these properties are in fully developed, irreplaceable locations in high-traffic commercial areas," said Jim Halliwell, director of acquisitions and dispositions at Principal Real Estate Investors. "Given the quality of these locations and the expertise and tenant relationships McCaffery brings to the venture, the properties should be in position to generate solid income growth and value appreciation over time.
Principal Real Estate Investors will pursue this transaction under a joint venture structure with McCaffery Interests, a real estate development and investment firm with offices in Chicago, Ill., and Northern Virginia. The partnership intends to increase the value of these properties by enhancing the facades, improving signage and landscaping, re-merchandising the tenant mix, and potentially developing out parcels.
"We are delighted to join in this effort with such a knowledgeable financial partner," said Daniel T. McCaffery, founder and president, McCaffery Interests. "We are both pleased that our efforts can be directed toward such a stellar group of assets."
About McCaffery Interests
Established in 1991, McCaffery Interests is a privately held real estate asset development company specializing in the acquisition, development, leasing, and management of commercial real estate properties nationwide. McCaffery Interests acquires and improves underutilized real estate assets and transforms them into developments that inspire the surrounding community, create opportunities and foster the ideals of smart urban growth and economic development. For more information, visit www.mccafferyinterests.com.
About Principal Real Estate Investors
Principal Real Estate Investors is the fourth largest institutional real estate manager in the United States based on tax-exempt assets under management1 and manages or subadvises $40.4 billion in commercial real estate assets. The firm's real estate capabilities include both public and private equity and debt investment alternatives. Principal Real Estate Investors is the dedicated real estate group of Principal Global Investors, a diversified asset management organization and a member of the Principal Financial Group®.
About the Principal Financial Group
The Principal Financial Group® (The Principal®)2 is a leader in offering businesses, individuals and institutional clients a wide range of financial products and services, including retirement and investment services, life and health insurance and banking through its diverse family of financial services companies. A member of the Fortune 500, the Principal Financial Group has $306 billion in assets under management3 and serves clients worldwide from offices in Asia, Australia, Europe, Latin America and the United States. Principal Financial Group, Inc. is traded on the New York Stock Exchange under the ticker symbol PFG. For more information, visit www.principal.com.
1) Ranked by U.S. institutional tax-exempt assets, out of 50 managers profiled, as of June 30, 2007. "Real Estate Managers," PENSIONS & INVESTMENTS, Oct. 15, 2007.
*As of Sept. 30, 2007. Principal Global Investors is the asset management arm of the Principal Financial Group® (The Principal®)1 and includes the asset management operations of the following subsidiaries of The Principal: Principal Global Investors, LLC; Principal Real Estate Investors, LLC; Spectrum Asset Management, Inc.; Post Advisory Group, LLC; Columbus Circle Investors; Edge Asset Management, Inc.; Morley Financial Services Inc.; Principal Global Investors (Europe) Limited; Principal Global Investors (Singapore) Ltd.; Principal Global Investors (Australia) Ltd.; Principal Global Investors (Japan) Ltd.; and the majority owned affiliates of Principal International, Inc.
2) "The Principal Financial Group" and "The Principal" are registered trademarks of Principal Financial Services, Inc., a member of the Principal Financial Group.
3) As of September 30, 2007.
