The portfolio comprises 25 Kroger and Safeway supermarkets, the second- and fourth-largest grocers, respectively, in the US. Most are free-standing properties and all are triple-net, anchor-only leases. The $47-million price tag includes closing costs and the assumption by Acadia of $34.5 million in existing debt. The Port Washington, NY-based REIT invested $11.25 million in equity.
"While the main focus for our acquisition program is to acquire assets that are geographically consistent with our core portfolio, we will also pursue transactions--within our core competency--where, quite simply, we can make money for our shareholders and investors," says Kenneth Bernstein, Acadia president and CEO.
"This portfolio acquisition demonstrates our team's ability to structure and then execute on a complex transaction," Bernstein continues. "The complicated ownership structure and income tax considerations created when this portfolio was syndicated in 1984, presented a uniquely attractive opportunity for Acadia Acquisition and Acadia's shareholders."
In a separate deal, Acadia expects to close within 30 days on its previously announced acquisition of the Brandywine Town Center. The one-million-sf, value-oriented mall is located in Wilmington, DE. Once the transaction is completed, Acadia Acquisition will have wrapped up its forecasted acquisitions for '03.
Acadia Acquisition is looking to buy $300 million worth of real estate for its first fund. With $161 million in assets, either purchased or under contract, the fund is past the half-way mark. Including the assets of the Acadia Fund, Acadia currently owns, or has joint venture interests in, and operates 51 properties totaling approximately eight million sf, located primarily in the Eastern US.
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