NORFOLK, VA–Wheeler REIT has acquired a 887,917-square foot shopping center for $85.65 million, or $96 per leasable square foot. This purchase of JANAF Shopping Yard includes the assumption of $58.4 million of mortgage loans.
JANAF, which is located some 9 miles from the Wheeler corporate office in Virginia Beach, was 94% occupied as of September 2017, and anchored by BJ's Wholesale Club and Fuel Center, T.J. Maxx, Petco and Big Lots. JANAF is sited on 92 acres across multiple buildings and includes 37,234 square feet of office space in one building. Originally built in 1959, JANAF has undergone several renovations, the last being in 2006. It is an ambitious acquisition for the REIT, which typically acquires smaller grocery-anchored shopping centers. CEO Jon Wheeler says in a prepared statement that the acquisition is a long-term play as “we believe there is tremendous value in the underlying real estate.”
The primary loan that Wheeler REIT is assuming has a $53.3 million balance with a fixed interest rate of 4.49% that matures in July 2023. The REIT will also assume a separate loan with a $5.1 million balance.
Wheeler REIT also announced that it has commenced a follow-on public offering of Series D Cumulative Convertible Preferred Stock. It plans to use the net proceeds from the offering to fund a portion of the acquisition price.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
