NEW YORK CITY—Annaly Capital Management said late Wednesday that subsidiary Annaly Commercial Real Estate Group had closed on an 11-property portfolio of grocery-anchored shopping centers, which it will own in partnership with Rochester, NY-based JADD Management. Deal terms, seller and location of the properties were not disclosed; published reports and Real Capital Analytics data value the 1.48-million-square-foot acquisition from DDR Corp. at $154 million.

Ranging in size from 62,747 to 278,241 square feet, the properties are located mainly in Rochester, Buffalo and their suburbs, although there are one each in Georgia and Ohio. They include Panorama Plaza and Culver Ridge Plaza in Rochester; Tops Plaza and Tops Plaza Union Road in Buffalo; Crossroads Center in Orchard Park, NY; four more Tops Plaza centers in Jamestown, Warsaw, Ontario and Le Roy, NY; Midway Plaza in Loganville, GA; and Chillicothe Plaza in Chillicothe, OH.

On a per-square-foot basis, the Loganville property was the costliest at $176 per square foot or $16 million total; the Tops Plaza at 3035 Niagara Falls Blvd. in Buffalo came in at the low end at $73 per square foot. The largest center in the deal was Panorama Plaza at $27.1 million, or $97 per square foot.

“We believe that this portfolio displays our commitment to strategically building a broader equity investment profile within our commercial platform,” says Robert Restrick, Annaly's head of commercial investments. For JADD, which reportedly had eyed the portfolio before partnering with Annaly, the deal furthers the company's strategy of buying “quality necessity-based retail real estate,” says JADD partner David Dworkin. “Although our portfolio spans multiple states, we remain heavily concentrated in upstate New York and that market has always served us well.”

For Beachwood, OH-based DDR, the sale of what it terms the KFC II portfolio, after joint venture partner Kuwaiti Financial Centre II, is a part of its campiagn to greatly reduce its Buffalo exposure. The largest city in upstate New York will drop out of the top 15 metro areas in DDR's portfolio following the close of this sale as well as another, unrelated deal.

More generally, DDR CEO Daniel Hurwitz says the sale "aligns with our strategic initiative to reduce exposure to non-core markets and assets, while simplifying our structure through the prudent dissolution" of JVs. The KFC II sale marks the 13th JV that DDR has exited since 2009; a release from DDR did not identify Annaly as the buyer.