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Donahue Schriber fetches $3B-plus on sale to East Coast investor

First Washington Realty picks up Costa Mesa-based developer's 47 shopping centers as western beachhead

From left: Michael Glimcher, president, chairman and CEO of Donahue Schriber; Alex Nyhan, CEO of First Washington Realty; the Donahue Schriber Headquarters at 200 Baker Street in Costa Mesa (First Washington Realty, Donahue Schriber, LoopNet)
From left: Michael Glimcher, president, chairman and CEO of Donahue Schriber; Alex Nyhan, CEO of First Washington Realty; the Donahue Schriber Headquarters at 200 Baker Street in Costa Mesa (First Washington Realty, Donahue Schriber, LoopNet)

A Maryland-based real estate firm has purchased Costa Mesa-based Donahue Schriber Realty Group, a landlord of nearly 50 shopping centers across the West.

An affiliate of First Washington Realty, based in Bethesda, bought the private real estate investment trust and its portfolio of grocery-anchored, open-air centers, Rebusiness Online reported.

While terms of the sale were not disclosed, Bloomberg reported that the negotiations for the deal valued Donahue Schriber Realty and its assets at more than $3 billion.

California Public Employees’ Retirement System (CalPERS) was an equity partner with FWR on the deal. JPMorgan Asset Management and the New York State Teachers’ Retirement System (NYSTRS) were among Donahue Schriber’s largest investors.

The sale increased First Washington’s holdings by 47 shopping centers and an office building, for a combined 6 million square feet.

It also anchored its presence on the West Coast, including high-profile markets such as the Bay Area, Orange County, Seattle, Portland, San Diego and Sacramento, while expanding its corporate base at former DSRG offices across the West.

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According to sources familiar with the deal, First Washington has been seeking a deal with Donahue Schriber for years.

“We are thrilled to purchase these grocery-anchored centers and to hire terrific new colleagues, which, together with our existing portfolio and people, will create the leading private, open-air retail platform in the United States,” says Alex Nyhan, CEO of First Washington Realty.

The combined company now operates as First Washington Realty and owns and operates more than 150 open-air neighborhood and community centers spanning more than 20 million square feet. The portfolio, which houses 3,600 tenants across 22 states and Washington, D.C., is valued at $8.9 billion.

Donahue Schriber Realty Group was founded in 1969 by Dan Donahue and Tom Schriber, who retired in 2010 as chairman of the board. Dan Donahue died in 2003 at age 60. Pat Donahue also had been a leading executive of the company prior to its sale.

[Rebusiness Online] – Dana Bartholomew

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AcquisitionsCosta MesaMergerOrange CountyShopping Centers