DDR Adds Another $1B in Retail From Benderson

CLEVELAND-Locally based Developers Diversified Realty Corp. has closed on another 53 retail assets from University Park, FL-based Benderson Development Co. The properties total 9.8 million sf and the purchase price was about $1.3 billion.The transaction follows closely on the heels of $1.4 billion in purchases from Benderson by DDR and its Australian listed property trust joint venture, Macquarie DDR Trust. In total, Developers Diversified has acquired 98 assets from Benderson, totaling approximately 17.5 million sf. In March, DDR announced an agreement to pay Benderson upward of $2.3 billion for 110 retail real estate assets totaling 18.8 million sf. The portfolio covers 11 states, but 80% of the space is located in New York and New Jersey. Average occupancy in the portfolio is 94%. Developers Diversified anticipates that it will close on the remaining properties in the acquisition portfolio as various closing conditions, such as completion of title and survey documentation, lender consents relating to loan assumptions and partner approvals, are satisfied. Benderson is retaining a 2% interest in certain assets, according to the agreement. DDR says the multi-billion purchase represents an 8% cap rate on a pro-forma basis without the benefit of straight-line rents. The portfolio’s largest tenants, based on revenue, are Tops Market (Ahold USA), Wal-Mart/Sam’s Club, Home Depot and Dick’s Sporting Goods.