VIRGINIA BEACH, VA—Wheeler REIT has expanded its purchasing power considerably with a $90 million private placement transaction and a new revolving line of credit.
The REIT announced it has completed private placement purchase agreements that resulted in gross proceeds of $90 million. It has also received a letter of intent with a national lender for a $45 million revolving line of credit.
The influx of capital positions Wheeler REIT for further growth including acquisitions, says Jon S. Wheeler, chairman and CEO, in a prepared statement. "The added capital provides the company with an opportunity to strengthen its balance sheet and further execute our business model while strategically acquiring 'necessity-based' properties from a robust pipeline of grocery anchored shopping centers."
Indeed, the company has been steadily picking up such assets over the past few years. Last month it entered into a contract to acquire Beaver Ruin Village, a 74,038 square foot shopping center in Lilburn, GA, for $12.35 million, or approximately $166.81 per square foot, using a combination of cash and bank debt. In February, it entered into a contract to acquire Butler Square, a 82,400 square foot shopping center located in Mauldin, SC. That property is trading for $9.4 million, or approximately $114 per square foot, again using a combination of cash and bank debt.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
