Frank Ullman, VP of Port Washington, NY-based Cedar, says the portfolio's occupancy is above 95%. A spokeswoman for WP tells GlobeSt.com the company is selling them "because they're stabilized properties in an earlier fund that we are winding down."
The centers are: West Bridgewater Plaza, a 138,000-sf center in West Bridgewater, MA, about 30 miles south of Boston, which is anchored by Shaw's supermarket and Big Lots; Kings Plaza, a 168,000-sf asset in New Bedford, MA, which is anchored by AJ Wright, Ocean State Job Lot and Work Out World; Groton Shopping Center, a 118,000-sf property in Groton, CT, anchored by TJ Maxx; Carman's Plaza, a 195,000-sf asset in Massapequa, Long Island, NY, anchored by Pathmark, AJ Wright, Best Fitness, Duane Reade and a New York State motor vehicles location; Yorktowne Plaza, a 159,000-sf center in Cockeysville, MD, 15 miles north of Baltimore, which is anchored by Food Lion and Rite Aid, and Circle Plaza, a 92,000-sf center in Shamokin Dam, PA that is leased to Kmart.
Kings Plaza is immediately adjacent to Cedar's Fieldstone Marketplace in New Bedford, which was previously acquired from WP and is anchored by a Shaw's supermarket. Circle Plaza is about 30 miles from Cedar's Loyal Plaza in Williamsport, PA and 55 miles from its properties and offices in Camp Hill.
Carman's Plaza is Cedar's first property on Long Island, "where the barriers to entry are well known," says Mike Winters, Cedar's VP of acquisitions. The assets "have excellent long-term leases with supermarkets and other strong anchors," he adds.
Frank Ullman tells GlobeSt.com some of the centers date back to the 1960s, but have since been redeveloped. "The Long Island center, for example," he says, "has a new long-term lease with Pathmark." Cedar will do all of the asset management, "but, for continuity of management on the ground," he says, "WP will have certain management roles. This is not an uncommon arrangement for us," he adds.
The estimated $32 million in cash will be funded from Cedar's secured revolving credit facility The property-specific mortgages have a weighted average interest rate of less than 6%. Circle Plaza is unencumbered. The portfolio sale is expected to close in third quarter.
"We are extremely pleased to be able to acquire these six properties on an attractive basis," says Leo Ullman, Cedar's CEO, in a statement. He says the acquisition is "consistent with our annual budgeted plans, while furthering our overall portfolio commitment to high-barrier-to-entry locations in the Northeast and mid-Atlantic states."
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