SAN JUAN, PUEROTO RICO-Beachwood, OH-based DDR Corp. plans to redevelop four shopping centers here for more than $50 million. The properties are in the cities of Bayamon, Hatillo and Carolina.
The centers will be funded with retained cash flow and capital recycled from the continued sales of non-prime assets, the company said in a statement, and should bring in returns that exceed 10%. Paul Freddo, senior EVP of leasing and development, said in the statement that the redevelopments are being driven by strong tenant demand for high-quality space. “With limited new construction on the island, our centers continue to offer a compelling choice for expanding retailers,” said Freddo.
Two of the properties are in Bayamon. Plaza del Sol, a 676,000-square-foot enclosed mall that features Walmart, Home Depot and Bed Bath & Beyond, will see a redevelopment finished by late 2012. The improvements at Rexville Plaza include the addition of a new CVS and Marshall’s in the space currently occupied by an underperforming Pueblo Supermarket, and will be completed by summer 2012.
Plaza del Norte, a 671,000-square-foot enclosed mall with Walmart, Sears and Toys “R” Us, will be redeveloped to include a 30,000-square-foot expansion and renovation of the existing JC Penney. The project will also accommodate a new Rooms to Go and PetSmart, and should be finished by early 2013.
In Carolina, the property Plaza Escorial currently has a Walmart and Sam’s Club. The site will also get a new PetSmart that will open prior to year end in the space formerly occupied by Borders.
Freddo said the improvements will improve sales volume at the centers, to more than $500 per square foot at the Plaza del Sol property, for example. DDR owns and manages 546 centers in 41 states, here and in Brazil. The president and CEO is Dan Hurwitz.
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