Company officials say the contribution allows Ramco-Gershenson to retain an investment in the center and generated approximately $63 million in proceeds net of the equity contribution. The proceeds will be used to reduce debt and free up availability under the company's revolving line of credit.
Mission Bay Plaza is 97% leased and anchored by tenants Albertson's Supermarket, OfficeMax, L.A. Fitness and Toys 'R Us. The shopping center was constructed in 1989 and acquired by Ramco-Gershenson in 2004. The three-mile trade area around the center has a population of 88,620 with an average household income of $86,293.
"Mission Bay Plaza is a successful shopping center, which made it an ideal candidate for a third-party sale or contribution to a joint venture," says Ramco-Gershenson president and CEO Dennis Gershenson, in a prepared statement. "This approach is part of an overall strategy to generate capital through asset sales."
Mission Bay Plaza is the 17th shopping center to be acquired by the joint venture, which was formed in December 2004. The properties acquired have a total acquisition price of $524 million and over three million sf. "Our joint venture has been an incredible success evidenced by the willingness of the partnership to continue to acquire assets beyond its original threshold of $450 million," Gershenson says.
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