The cost of rebuilding the Ames unit is estimated at as much as $2 million. Even when the investment cost combines with the purchase price, Cedar's cost of $50 per sf is approximately half of the current median price of $98 per sf for multi-tenant retail properties in this area, according to data from the Philadelphia office of Marcus & Millichap.
The Weis lease runs to 2016 and contains options for extension. Other tenants include a CVS drug store, Blockbuster Video, Pennstar Bank and Burger King. Conshohocken, PA-based Fameco Real Estate brokered the sale of the center and has been appointed exclusive leasing agent for the vacant premises.
Cedar funded the purchase with a cash drawdown from its floating-rate credit facility and with limited partnership units of the "Upreit" operating partnership of which Cedar is the managing partner. The property is unencumbered.
This acquisition takes Cedar's portfolio to 25 shopping center properties with an aggregate of more than four million sf. The overwhelming majority of the properties are multi-tenant, supermarket-anchored centers in Eastern Pennsylvania, Southern New Jersey, Maryland and Connecticut.
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