Shopping Center Business

MAY 2017

Shopping Center Business is the leading monthly business magazine for the retail real estate industry.

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40 • SHOPPING CENTER BUSINESS • May 2017 NEWSLINE URBAN EDGE TO ACQUIRE $325 MILLION RETAIL PORTFOLIO IN NEW YORK, PHILADELPHIA, ST. LOUIS U rban Edge Properties, a real estate investment trust, has entered into a contract to acquire a seven-proper- ty portfolio of retail assets for $325 million. The 83 percent leased portfolio spans approximately 1.5 million square feet of leasable space, and consists primarily of retail properties in the New York City area, with holdings in the Philadelphia and St. Louis areas as well. According to CoStar Group, affiliates of New Jersey-based Acklinis Realty Holding LLC have owned the portfolio for the last four decades. The contrib- utors will exchange their interests for approximately $127 million of UE's operating partnership units, which are valued at $27.02 per unit. Urban Edge will also assume $33 mil- lion in existing debt, issue roughly $117 million of non-recourse, secured debt and fund the remaining $48 million in cash. Among the portfolio's New York City-area properties are Yonkers Gate- way Center, a 436,770-square-foot asset located at 2500 Central Park Ave. in Yonkers, which is 88 percent leased to tenants such as Burlington, PetSmart and Alamo Drafthouse; and The Plaza at Woodbridge, a 413,013-square-foot center located at 675 U.S. Highway 1 in Woodbridge, New Jersey, which is 81 percent leased to tenants such as Best Buy and Toys "R" Us. The property in the greater Philadel- phia area is The Plaza at Cherry Hill, a 412,969-square-foot center that is 74 percent leased and located in the eastern suburb of Cherry Hill, New Jersey. The property includes tenants such as Aldi and LA Fitness. The asset located in the greater St. Louis area is Manchester Plaza, a 130,934-square-foot center that is 89 percent leased and located in the west- ern suburb of Manchester. Tenants in- clude Academy Sports + Outdoors and Bob's Furniture. The 10 acquisitions, in aggregate, are expected to generate a 5.7 percent initial cash unleveraged yield. Addition- ally, net operating income should grow more than 5 percent per year over the next five years prior to any impact from expansions or redevelopments, adds Ol- son. The transaction is expected to close during the second quarter. — Taylor Williams

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