FARMINGTON HILLS, MI—Ramco-Gershenson Properties Trust concentrates on buying retail properties in the Eastern and Central US, and has just picked up a pair of multi-anchored shopping centers located in the Twin Cities and Cincinnati metro areas for about $150 million.
The first property, Woodbury Lakes, the company’s first acquisition in the Minneapolis-St. Paul market, sits in Woodbury, an eastern suburb of the Twin Cities. Trader Joe’s anchors the 366,000-square-foot center, along with buybuy Baby, DSW, H&M, The Gap, Charming Charlie, and Michael’s. Ramco-Gershenson has also reached an agreement to purchase more land to develop other restaurants or entertainment venues.
The company typically buys well-leased centers in affluent neighborhoods. Tenants lease about 89% of the space in Woodbury Lakes, and its trade area has an average household income of $96,000.
The second property, Bridgewater Falls is located in Hamilton, OH, a northern suburb of Cincinnati. This was the company’s second acquisition in the metro region. As reported in GlobeSt.com, in December 2013, it acquired the 460,000-square-foot Deerfield Towne Center in suburban Mason.
Bridgewater Falls has about 630,000-square-feet of space and an anchor-line-up that includes Target, JC Penney, Dick’s Sporting Goods, TJ Maxx, Old Navy, Michael’s, PetSmart and Bed, Bath & Beyond. The center was built in 2007 and tenants have occupied 94% of its space. The trade area has an average household income of $77,000.
“Woodbury Lakes and Bridgewater Falls are terrific additions to our high-quality shopping center portfolio,” says Dennis Gershenson, president and chief executive officer. “Each demonstrates our commitment to fortifying our asset base with exceptional shopping centers that continue to diversify our markets into leading MSAs, contain opportunities to add value, and demonstrate our measured approach to long-term growth. The funding of these acquisitions was undertaken with a prudent balance of equity and debt in keeping with our desire to maintain a strong balance sheet.”
On March 31, 2014, the company owned and managed a portfolio of 79 shopping centers and one office building with about 15.8-million-square-feet of gross leasable area owned by the company or its joint ventures.