Acadia's Mall Sales Top 375,000 SF; Trims Kmart Exposure

NEW YORK CITY-Long Island mall REIT Acadia Realty Trust has further pared its Kmart exposure with the opportunistic sale of two shopping centers. The buyer is Valley Stream, NY-based real estate investment fund Armstrong Capital LLC, which picked up the properties for $16.8 million.

Manahawkin Village Shopping Center, located in Manahawkin, NJ, is anchored by a 112,000-sf Kmart. Additional tenants include a Hoyt’s 10-Plex theater and a 5,950-sf Mandees. Kmart’s base rent at this center was the highest among all of the Kmart locations within Acadia’s portfolio. The 175,987-sf community shopping center is located 30 miles north of Atlantic City.

The second property, Valmont Plaza, is a 200,000-sf shopping center located in West Hazelton, PA. Acadia recently finalized a 41,000-sf lease with Big Lots as a new anchor for the center. The company eliminated $7.3 million of debt in the sale, $4 million of which was above-market fixed rate debt. Acadia provided the buyer with $12.6 million in short-term financing for the acquisition, which is expected to be repaid by year’s end.