UNCASVILLE, CT-Cedar Shopping Centers, Inc. is laying down about $19.6 million for the Montville Commons, here. The purchase, from Sovereign Bank is on behalf of a joint venture between Cedar and RioCan REIT of Toronto. The 118,000-square-foot supermarket-anchored center was built in 2006 and has potential development space.
Anchoring the retail center is a 63,000-square-foot Stop & Shop in the midst of a long-term lease which expires in 2027. The center shares an entrance with a nearby Home Depot and contains Sleepy's and Chili's in addition to two empty parcels for development. The parcels are pad sites which are approved for development of an additional 8,200 square feet, although it is not committed to anything currently. Excepting the undeveloped property, the center is 98% leased.
The JV will acquire the property with no existing debt is anticipating to place an $11-million fixed-rate loan on the center with a 10-year term at 5% interest. According to a release, Cedar is "entitled to acquisition, property management, leasing, construction management, reporting and financing fees for the property" with its initial equity investment totaling $4 million.
Leo Ullman, president and CEO of Cedar, tells GlobeSt.com that the attraction of the property stems from a number of places, not least of which is a long lease to a strong anchor tenant in Stop & Shop. "It's a very new property and well located within an area of growing population," Ullman says. "It's a nice property in an area where barriers to entry are very severe."
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
