SITE Centers Completes Spin-Off of Curbline Properties

After nearly a year since its board of directors approved the split, SITE Centers, a national owner of open-air shopping centers, has completed its spin-off of Curbline Properties Corp. into the first and only public REIT focused exclusively on convenience retail assets.

The new REIT began trading yesterday on the New York Stock Exchange under the ticker CURB. SITE Center shareholders received two shares of Curbline common stock for every one common share of SITE Centers held at the close of business on Sept. 23. SITE Centers will provide shared services to CURB in the first two years following the spin-off.

On Monday, SITE Centers announced it had sold 11 wholly owned properties for an aggregate gross price of $610.1 million between Sept. 17 and Sept 27. As a result of the dispositions, Curbline is now capitalized with about $800 million in cash. SITE Centers also reported Curbline will have access to a $400 million undrawn, unsecured line of credit, a $100 million unsecured, delayed draw term loan and no debt.

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Curbline owns at least 78 properties in 14 states—Arizona, California, Colorado, Florida, Georgia, Illinois, Massachusetts, Maryland, North Carolina, New Jersey, Ohio, Tennessee, Texas and Virginia—as of Sept. 16, according to a company list.

Led by David Lukes as president & CEO, Curbline describes itself as an owner and manager of convenience shopping centers positioned on the curbline of well-trafficked intersections and major vehicular corridors in suburban, high household income communities.

With the growth of post-pandemic hybrid work schedules, people spend more time in their communities and often visit retailers that provide necessities and services, ensuring a strong foot traffic and sales for these properties’ tenants.

In a second-quarter investors’ presentation touting the planned Curbline spin-off, SITE Centers cited potential inflation-protected returns that would be driven by high renewal rates, limited capital expenditures and elevated renewal rates. The company also noted more than 70 percent of the tenants were national brands.

Preparing for a spin-off

SITE Centers, based in Beachwood, Ohio, began its convenience retail strategy in 2019. In 2022, SITE Centers began separating convenience assets next to existing properties as it began preparing for the spin-off. Last November, SITE Centers announced its board of directors had approved the spin-off of Curbline. A month earlier, SITE Centers had received a $1.1 billion financing commitment from affiliates of Apollo, including ATLAS SP Partners, to retire unsecured debt, including all outstanding prior notes.

In the year or so leading up to the spin-off, SITE Centers has been implementing an aggressive capital recycling program. In addition to the 11 properties sold in the latter part of September for $610.1 million, SITE Centers reported it had sold 13 wholly owned shopping centers for $714.3 million from the beginning of the third quarter through Sept. 17. It had also made several acquisitions including the purchase of six convenience properties for $111.2 million including Loma Alta Station in San Diego, Calif., and Nine Mile Corner in Denver.

On Sept. 26, Benderson Development acquired The Shops at Midtown Miami, a 347,740-square-foot, grocery-anchored retail center in Miami, from SITE Centers for $83.8 million in a deal arranged by JLL. A few days earlier, Benderson purchased Cypress Trace, a grocery-anchored center in Fort Myers, Fla., from SITE Centers. CommercialEdge reported that property sold for $40.4 million.

Other recent SITE Centers dispositions included:

Springfield Center, Springfield, Va., $49.1 million

Hamilton Marketplace, Trenton, N.J., $116.5 million

Whole Foods at Bay Place, Oakland, Calif., $44.4 million

Ridge at Creekside, Roseville, Calif., $39.8 million

Echelon Village Plaza, Voorhees Township, N.J., $8.5 million

University Hills Plaza, Denver, $56.5 million

Village Square at Golf, Boynton Beach, $31.1 million

SITE Centers also reported the sale of a three-property portfolio in late September for $180.5 million but did not disclose the buyer or locations of the assets.

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