VIRGINIA BEACH, VA—Wheeler REIT, which has been building up its portfolio over the last few years steadily acquiring one or two assets at a time, has scooped up a 14-property portfolio for $71 million, or $117.72 per leasable square foot. It is the REIT's largest acquisition to date.
The grocery-anchored shopping centers are located in South Carolina and Georgia. It totals about 603,142-square feet and is 92% leased. The anchors are typically Harris Teeter, Bi-Lo and Piggy-Wiggly.
This was a stock-and-cash deal for Wheeler REIT, which secured increases in its credit facility and a term loan for a total of $68 million. Specifically, the company increased its $45 million revolving credit line with KeyBank National Association to approximately $67.2 million, priced at 500 basis points above 30-day Libor. It also secured an $8 million term loan with Revere High Yield Fund, LP at 8% interest. The reminder will be funded with 888,889 units of its operating partnership, valued at $2.25 per unit.
With this deal Wheeler now has 56 retail properties in its portfolio, as well as 81 acres of development property.
In a prepared statement, CEO Jon S. Wheeler said the acquisition “will bring us that much closer towards dividend coverage in the second half of 2016.”
The grocery-anchored shopping centers are located in South Carolina and Georgia. It totals about 603,142-square feet and is 92% leased. The anchors are typically Harris Teeter, Bi-Lo and Piggy-Wiggly.
This was a stock-and-cash deal for Wheeler REIT, which secured increases in its credit facility and a term loan for a total of $68 million. Specifically, the company increased its $45 million revolving credit line with
With this deal Wheeler now has 56 retail properties in its portfolio, as well as 81 acres of development property.
In a prepared statement, CEO Jon S. Wheeler said the acquisition “will bring us that much closer towards dividend coverage in the second half of 2016.”
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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.
