Acadia recently finalized a 41,000-sf anchor lease with Big Lots at this location. The other property is Manahawkin Village Shopping Center in nearby Manahawkin, NJ.
With the two-property sale, Acadia eliminated $7.3 million of debt, including $4 million that carried interest at an above-market fixed rate. At the same time, the UPREIT provided Armstrong with $12.6 million in short-term financing to facilitate the sale. According to a statement, Acadia anticipates being repaid this year.
Kmart is currently operating under chapter 11 bankruptcy protection. To date, however, none of the Kmart stores in Acadia's portfolio has been closed, nor have any of the leases been rejected.
"This transaction serves two important goals for Acadia," says Kenneth Bernstein, Acadia's president and chief executive, in a statement. "First, it enables us to efficiently recycle capital and maximize the return to our shareholders by reinvesting capital in more accretive opportunities…Second, this transaction reduces our exposure to Kmart."
He adds all of the Kmart stores in the portfolio, including these two, are productive "with above average sales," and added, "this transaction is important in achieving our goal to diversify our national tenant base and to reduce our exposure to any one retailer, including Kmart.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
