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Cedar Completes $170M JV, $32M Buy

NEW CUMBERLAND, PA-While gaining $53.2 million from Homburg Invest's 80% stake in nine centers, Cedar also closes a two-property buy.

By Marita Thomas | Updated on December 10, 2007

NEW CUMBERLAND, PA-Cedar Shopping Centers Inc. has closed a joint venture with Halifax, Nova Scotia-based Homburg Invest Inc. for nine supermarket-anchored shopping centers, as GlobeSt.com previously announced. Simultaneous with the close of this transaction, the Port Washington, NY-based shopping center REIT, which also has an office here, closed on its acquisition of two properties from Westport, CT-based Paragon Realty Group LLC.

Eight of the nine centers in the Cedar/Homburg JV are in Pennsylvania and the other is in Massachusetts. The portfolio is valued at $169.5 million, which represents a cap rate of approximately 7%, and the properties are subject to about $106 million in first-mortgage financing. Cedar retains a 20% interest and obtains $53.2 million in net cash proceeds from Homburg’s 80% interest.

All of the centers are anchored by a Giant or Stop & Shop supermarket. The Pennsylvania properties are 110,000-sf Pennsboro Commons in Enola, 90,000-sf Stonehedge Square in Carlisle, 86,000-sf Meadows Marketplace in Hershey, 55,000-sf Aston Center in Aston, 56,000-sf Ayr Town Center in McConnellsburg, 107,000-sf Parkway Plaza in Mechanicsburg, 68,000-sf Scott Town Center in Bloomsburg, and 68,000-sf Spring Meadow Shopping Center in Wyomissing. The ninth property is the 194,000-sf Fieldstone Marketplace in New Bedford, MA.

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