Blackstone, DDR JV on $332M Deal

NEW YORK CITY-The Blackstone Group‘s Blackstone Real Estate Partners VII LP is partnering with DDR on a geographically diverse portfolio of shopping centers totaling 2.4 million square feet, which the joint venture is acquiring from Regency Centers for a total of $332 million. Blackstone owns 95% of the common equity in the JV; Beachwood, OH-based DDR will provide leasing and management services along with owning the remaining 5% of the seven retail properties.

The purchase price includes assumed debt of $207 million and $28 million of new mortgage debt. DDR says it has also invested $30 million in preferred equity in the venture, and as with a previous Blackstone JV, the REIT potentially could acquire four of the most dominant assets in the portfolio. Cushman & Wakefield brokered the sale.