The $136.3 million in net proceeds from the transaction were used to pay down DDR's primary revolving credit facility, which was used to fund DDR's acquisition of its interest in the Mervyns stores assets, and for general corporate purposes. The $396.2-million joint venture acquisition of 36 Mervyns department stores closed about two weeks ago.

The office and industrial assets DDR sold were first acquired as part of a 2001 deal through a merger with American Industrial Properties. The portfolio consisted of 31 industrial buildings, six office properties, two retail properties and approximately 24 acres of raw land. Since the merger, Developers Diversified sold seven properties and one land parcel with gross proceeds aggregating over $32 million.

This transaction disposes of all remaining industrial and office assets from the American Industrial Properties transaction, except for one property held in a joint venture, one property (comprised of three individual assets) which DDR is precluded to sell by the terms of the issuance of Developers Diversified operating partnership units in connection with the original acquisition, and one very small property located in DDR's hometown. DDR will continue to own and operate the two retail properties located in Denver, CO and Daytona Beach, FL.