Wheeler REIT Sells Two Virginia Holdings
The assets totaling 26,923 square feet were sold for approximately $7.46 million, which afforded the company to pay down $4.5 million of property-level debt and $1.6 million of its Revere loan.
VIRGINIA BEACH, VA—In a move the company says is another step to bringing it back to sustainability, Wheeler Real Estate Investment Trust reports it has sold two non-core assets in Virginia.
The assets totaling 26,923 square feet were sold for approximately $7.46 million, which afforded the company to pay down $4.5 million of property-level debt and $1.6 million of its Revere loan.
“These dispositions are another step in our path to sustainability,” states David Kelly, Wheeler REIT president and CEO, “and have helped us to further reduce the balance on the Revere note, which has been reduced from $6.8 million at the beginning of the year to $1.36 million today. These strategic sales also demonstrate our commitment to deliver on our stated goals of creating a solid, flexible balance sheet, consistent cash flows and a sustainable dividend. We have more to accomplish, but we are pleased with our progress over these recent months.”
The two properties that changed hands were Eagle Harbor, a 23,303-square-foot, non-anchored strip center asset in Carrollton, VA for $5.7 million and the Chartway Federal Credit Union building, a 3,620-square-foot, single-tenant net leased asset in Virginia Beach, which traded for $1.75 million.
The Eagle Harbor sale calculated out to an 8% capitalization rate, while the Chartway Federal Credit Union property registered a 6.9% cap rate.