Cedar Nabs Six Shopping Centers for $117M

June 05, 2007 By Adam Perrotta, News Writer

Cedar Shopping Centers Inc. has acquired a portfolio of six retail centers from WP Realty for a total of $117 million. The complexes, located in the Northeast and Mid-Atlantic, total nearly 900,000 square feet of retail space. Among that notable tenants in the portfolio are T.J. Maxx, Pathmark, Shaw's and Food Lion supermarkets, and K-Mart.

Two of the properties--the 138,000-square-foot West Bridgewater Plaza and 168,000-square-foot Kings Plaza--are located in Massachusetts. The 118,000-square-foot Groton Shopping Center is sited on US Route 1 in Connecticut, while Carman's Plaza, measuring 195,000 square feet is on Long Island. 159,000-square-foot Yorktowne Plaza is located in suburban Baltimore, and Circle Plaza--which measures 92,000 square feet--is in Pennsylvania.

Cedar will fund the acquisition using approximately $86 million in first-mortgage loans, with the balance of the purchase price being funded via the firm's revolving credit facility. Cedar's board has approved the deal, and due diligence has been completed on four of the six properties. Final closing is expected to occur in the third quarter of this year.

Cedar executives identified the purchase as aiding in the company's goal of entering into markets with high barriers to entry. In addition, Mike Winters, the firm's vice president of acquisitions, identified the properties' "excellent long-term leases with supermarkets and other strong anchor tenants," as a major attraction.

The deal is not the first between Cedar and WP Realty. The two firms previously transacted deals for New Bedford, Mass.' Fieldstone Marketplace and Jordan Lane in Wethersfield, Conn., among other transactions.

Cedar Shopping Centers is a REIT focused on supermarket-anchored shopping centers and drug store-anchored convenience centers. Currently, the company owns and operates 104 such properties, with an aggregate of approximately 10.6 million square feet of gross leasable area, located in nine states, predominantly in the Northeast and Mid-Atlantic regions. Cedar also owns 11 development parcels aggregating approximately 196 acres.


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