The two Cleveland-area centers, Sheffield Crossing and Amherst Marketplace, are anchored by Giant Eagle supermarkets. Granville Center in Columbus is anchored by a Big Bear Supermarket.
Sheffield Crossing was developed in 1997. It totals 112,000 sf, with Giant Eagle accounting for 59,000 sf. The center in Cleveland's Sheffield suburb also has a CVS pharmacy and is 88% leased.
Amherst Marketplace totals 88,000 sf, including a 66,000-sf Giant Eagle, a CVS pharmacy and two local tenants. It was built in 1996 and is 100% leased.
Granville Center in the Columbus metro market was completely redeveloped in 1999 and 2000 with a new 55,000-sf Big Bear anchor. It totals 132,000 sf and is 91% leased. Among the other tenants are Blockbuster Video and California Fitness.
The transaction was through Acadia's acquisition joint venture, Acadia Strategic Opportunity Fund, L.P. The price represents an 11.6% cap rate on current net operating income and a 10.7% cap rate after structural reserves and management fees.
The favorable cap rate, according to a statement, is due in part to the two Giant Eagle-anchored properties being encumbered by existing above-market-rate debt. Acadia assumes a $12.6-million, fixed-rate debt on the two properties at a blended rate of 8.1%.
It also obtains a new $6-million loan on the third property at a floating rate of LIBOR plus 2%. The current weighted average rate for the combined $18.6 million in debt is 6.7%.
This is the joint-venture fund's first acquisition. "We consider (it) a good initial step in filling our $300-million acquisition pipeline," says Kenneth Bernstein, president and chief executive officer in a statement.
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