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| Cedar Shopping Centers to purchase Massachusetts center Cedar Shopping Centers, Inc. announced that it has entered into a definitive agreement to purchase Northwoods Crossing in Taunton, Massachusetts, on behalf of the joint venture between Cedar (20%) and RioCan Real Estate Investment Trust of Toronto, Canada (80%). Cedar also entered into a definitive contract to sell Fairfield Plaza, a non-core property, in New Milford, Connecticut. Northwoods Crossing is a 160,000 sq. ft. shopping center on approximately 42 acres off Route 495, less than 40 miles from Boston and across from the largest office park in New England. The property can be expanded by an additional 15,000 sq. ft. In the event that the joint venture in fact builds and leases such additional square footage, the seller will be entitled to an "earnout" at 8.5% on the base rental income. The purchase price, exclusive of closing costs and adjustments, is approximately $23.5 million and is subject to existing non-recourse financing of approximately $14.5 million at 6.35%, maturing in 2016. Cedar's investment will be approximately $1.8 million above the existing debt, which it expects to fund from its secured revolving credit facility. RioCan's share of the equity investment above the existing debt will be approximately $7.2 million. This will be the 22nd property owned by the Cedar/RioCan joint venture. The closing, which is subject to lender approvals and standard closing conditions, is expected to be completed in the second quarter of 2011. Cedar has agreed to sell Fairfield Plaza in New Milford, Connecticut, a 72,000 sq. ft. center anchored by T.J. Maxx and Staples to an affiliate of Urstadt Biddle Properties, Inc. for $10.84 million. The property was acquired by Cedar in May 2005 for approximately $9.25 million as part of a portfolio of 25 properties. The purchase is subject to assumption of an existing first mortgage loan in the amount of approximately $5 million held by KeyBank National Association. The Company expects to receive net cash proceeds of approximately $5.8 million, subject to closing costs and adjustments, and to realize a reportable gain of approximately $500, 000 upon completion of the sale. The proceeds will be used to reduce amounts outstanding under the Company's credit facility. write your comments about the article :: © 2011 Construction News :: home page |