BRYN MAWR, PA-Locally based WP Realty has completed its sale of a six-property shopping center portfolio to Cedar Shopping Centers Inc. Port Washington, NY-based Cedar paid $117 million for the centers, which are located in four states and have an aggregate of approximately 870,000 sf.
The price includes the assumption of approximately $86 million of existing first-mortgage financing on the properties with a weighted average interest rate of less than 6%. The remainder of the purchase price is funded from Cedar's secured revolving credit facility.
Two of the properties are in Massachusetts. The 138,000-sf West Bridgewater Plaza in West Bridgewater is anchored by a Shaw's supermarket and Big Lots. The 168,000-sf Kings Plaza in New Bedford is adjacent to Fieldstone Marketplace, which Cedar acquired earlier from WP. The Kings Plaza anchors are AJ Wright, Ocean State Job Lot and Work Out World.
Groton Shopping Center in Groton, CT is a 118,000-sf center anchored by TJ Maxx. Yorktowne Plaza is a 159,000-sf center in Cockeysville, MD with a Food Lion supermarket and Rite Aid drug store as anchors. Circle Plaza is a 92,000-sf property leased to K-Mart. It is located in Shamokin Dam, PA, 33 miles from Cedar's Loyal Plaza in Williamsport and 55 miles from Cedar's Pennsylvania office and shopping center in Camp Hill.
Carman's Plaza in Massapequa, NY, represents Cedar's first foray into Long Island, which has high barriers to entry. A Pathmark supermarket, AJ Wright, Best Fitness, Duane Reade and a New York State department of motor vehicles facility are the major tenants in the 195,000-sf center.
In addition to this portfolio and Fieldstone Marketplace, WP previously sold Jordan Lane in Wethersfield, CT to Cedar. “We value our relationship with WP, the opportunity they have offered to us to purchase these properties and the prospect of continuing to work with them in coming years,” says Leo Ullman, Cedar's CEO, in a statement.
At the time of the closing on the WP portfolio, Cedar also acquired a 15.5-acre development parcel next to its supermarket-anchored center in DuBois, PA, and a two-acre parcel adjacent to its 274,553-sf Brickyard Shopping Center in Berlin, CT. The aggregate price of both parcels is $2.6 million, funded from the Cedar credit facility.
The land acquisitions were separate transactions, “which we acquired for strategic reasons,” Frank Ullman, VP, tells GlobeSt.com. “We don't have specific leasing commitments, but, as a policy, we try to tie up real estate adjacent to our properties to provide flexibility for possible future expansion.” Of the WP portfolio, he says, “occupancy is greater than 95%. Each of the centers was developed in excess of 20 years ago, but all have been renovated recently.”
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