PHILADELPHIA—Cedar Realty Trust has closed on the purchase of the 456,000-square-foot Quartermaster Plaza in South Philadelphia for $92.3 million.
The purchase price included the assumption of $53.4 million of fixed-rate debt by the Port Washington, NY-based REIT. Quartermaster Plaza, which was built in 2004, is 98% occupied and anchored by a BJ’s Wholesale Club.
Cedar Realty states that it expects the acquisition to be funded with anticipated proceeds from asset sales. Pending such proceeds, the acquisition will be initially funded using the company’s credit facility, the company reports.
Quartermaster Plaza, situated on more than 43 acres, has approvals for up to an additional 98,000 square feet of development and is located adjacent to Cedar’s South Philadelphia Shopping Center, a 283,000-square-foot center anchored by a ShopRite supermarket.
Cedar Realty now owns 739,000 square feet of retail space in the area, representing 22% of the South Philadelphia retail submarket. The company’s Philadelphia portfolio now includes five shopping centers totaling 1.3 million square feet.
“We are excited about the acquisition of Quartermaster Plaza. The acquisition fits perfectly into our Washington DC to Boston footprint and is consistent with our evolving view of the grocery business,” says Bruce Schanzer, president and CEO of Cedar Realty Trust. “Our now dominant presence in the South Philadelphia submarket allows us to leverage our operating and leasing expertise to continue to serve the needs of this large and growing urban population.”