PORT WASHINGTON, N.Y., Sept. 4 /PRNewswire-FirstCall/ — Cedar Shopping Centers, Inc. (NYSE: CDR), today announced that it has entered into agreements to purchase two supermarket-anchored shopping centers totaling approximately 314,000 square feet of gross leasable area (GLA) in Gardner, Massachusetts and Bridgeton, New Jersey from affiliates of Paragon Realty Group LLC of Westport, Connecticut.
The Massachusetts property, Timpany Plaza in Gardner, Massachusetts, is a 183,775 sq. ft. shopping center anchored by a 60,000 sq. ft. Stop & Shop. The New Jersey property, Carll’s Corner in Bridgeton, New Jersey, is a 129,582 sq. ft. shopping center anchored by a 55,000 sq. ft. Acme supermarket.
The total purchase price for the two properties excluding closing costs and adjustments is estimated at approximately $31.5 million. The properties are presently encumbered by first mortgage financings of approximately $14.8 million in the aggregate, at a weighted average interest rate of 5.88%.
The estimated $17.2 million balance of the purchase price (including closing costs), will be funded from the Company’s secured revolving credit facility.
Paragon Realty Group LLC, which is expected to constitute a development source for Cedar in the New England area, will continue to provide certain property management and leasing services to these properties as well as to two or three nearby Connecticut properties presently owned by Cedar.
Mike Winters, Cedar’s Vice President of Acquisitions, stated, “These properties, with solid supermarket operators, are being acquired at attractive capitalization rates in excess of 7%. Additionally, they further enhance our commitment to building on our existing ownership in the New York-to-Boston and the New York, Philadelphia, Baltimore and Washington corridors. We are very pleased that the relationship we have built with Paragon Realty Group over the past few years resulted in the opportunity to secure these two assets in our primary geographic areas. We hope to continue this relationship for years to come.”
About Cedar Shopping Centers, Inc.
Cedar Shopping Centers, Inc. is a fully-integrated real estate investment trust which focuses primarily on ownership, operation, development and redevelopment of supermarket-anchored shopping centers and drug store-anchored convenience centers. The Company has realized significant growth in assets since its public offering in October 2003 and presently owns and operates 107 of such primarily supermarket- and drug store-anchored centers with an aggregate of approximately 10.7 million square feet of gross leasable area, located in nine states, predominantly in the Northeast and mid-Atlantic regions. The Company also owns interests in a number of development properties as well as development parcels aggregating approximately 192 acres.
Certain statements contained in this press release constitute forward-looking statements within the meaning of the securities laws. Forward-looking statements include, without limitation, statements containing the words “anticipates”, “believes”, “expects”, “intends”, “future”, and words of similar import which express the Company’s belief, expectations or intentions regarding future performance or future events or trends. While forward-looking statements reflect good faith beliefs, they are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors, which may cause actual results, performance or achievements to differ materially from anticipated future results, performance or achievements expressed or implied by such forward-looking statements as a result of factors outside of the Company’s control. Certain factors that might cause such a difference include, but are not limited to, the following: real estate investment considerations, such as the effect of economic and other conditions in general and in the Company’s market areas in particular; the financial viability of the Company’s tenants; the continuing availability of shopping center acquisitions, and development and redevelopment opportunities, on favorable terms; the availability of equity and debt capital in the public and private markets; changes in interest rates; the fact that returns from development, redevelopment and acquisition activities may not be at expected levels; the Company’s potential inability to realize the level of proceeds from property sales as initially expected; inherent risks in ongoing development and redevelopment projects including, but not limited to, cost overruns resulting from weather delays, changes in the nature and scope of development and redevelopment efforts, and market factors involved in the pricing of material and labor; the need to renew leases or re-let space upon the expiration of current leases; and the financial flexibility to refinance debt obligations when due. Such forward-looking statements speak only as of the date hereof. The Company does not intend, and disclaims any duty or obligation, to update or revise any forward-looking statements set forth in this release to reflect any change in expectations, change in information, new information, future events or circumstances on which such information was based.
SOURCE Cedar Shopping Centers, Inc.
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