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PORT WASHINGTON, NY-Cedar Shopping Centers, based here, has completed the purchase of Fieldstone Marketplace in New Bedford, MA and Kent Plaza shopping centers in Kent, OH. The REIT also terminated an agreement for a center in Bay City, MI.

Fieldstone is a 194,000-sf community shopping center anchored by a 68,000-sf Shaw's supermarket. The purchase price was $26.2 million and the acquisition was effected by assumption of a first mortgage of approximately $19 million and payment of approximately $7.2 million in cash drawn from the company's revolving credit facility.

The 82,000-sf Kent Plaza is anchored by a 56,600-sf Gabriel Brothers store and an 18,700-sf North Coast medical facility. It is unencumbered and was purchased for $4.75 million in cash drawn from the revolving credit facility. Both deals were exclusive of closing costs and adjustments.

Leo S. Ullman, CEO of Cedar, says Fieldstone is "an excellent addition to our Massachusetts and Connecticut supermarket-anchored property portfolio. The Kent property which is being purchased at a cap rate of more than 10%, and which is near a couple of other properties purchased recently from Giltz & Associates, is at a stone's-throw from the entrance to Kent State University and is expected to feature some meaningful future expansion." Ullman adds that since Cedar will be focusing on development and redevelopment for the next couple of years, the firm does not contemplate allocation of substantial additional resources to the Ohio (or Michigan) area "absent extraordinary opportunities."

In May, Cedar contracted to purchase Bay City Stadium Plaza, a 136,200 sf in Bay City. According to the company, as a result of "certain matters which have not been satisfactorily resolved during the due diligence period, Cedar has terminated the purchase agreement." The price would have been $8.64 million, exclusive of closing costs and adjustments, of which $4.5 million would have been by assumption of existing first mortgage financing. Cedar has received a refund of its deposit of $500,000 plus accrued interest and an additional amount of approximately $20,000, representing one-half of fees paid to third-party environmental engineers.

Instant Insights /

Cedar Buys Two, Terminates Agreement on Another

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