Levin Acquires Full Control of Six Centers

The six properties that Levin now owns outright include Blue Star Shopping Center in Watchung, 418,400 sf, anchored by ShopRite, Kohl's, Toys 'R' Us and Office Depot; Brunswick Shopping Center in North Brunswick, 306,800 sf, anchored by A&P, A.J. Wright, LA Fitness and Dollar Tree; and Hamilton Square in Hamilton, 184,300 sf, anchored by Dollar Tree A.C. Moore and ShopRite.

Also on the list are the 291,200-sf Clifton Plaza with Sports Authority, Barnes & Noble, Stop & Shop, Staples and the 80,000-sf Allwood Plaza, which includes a Stop & Shop and Mandee's, both in Clifton; and the 266,700-sf Rutgers Plaza in Franklin Twp., which includes Kmart, Office Depot and Stop & Shop.

All six properties were initially developed by Levin, and in a 1989 master lease deal, Federal picked up operational control through a now-terminated participating ground lease. Since then, Levin has been acting as the managing agent for the properties.

"Levin and Federal can each be proud of a complex endeavor that ran harmoniously and profitably for 20 years," says Bill Farber, head of Levin Properties. "The deal made sense when we made it, and it now makes good sense to go our separate ways as friends."

"This transaction has the added benefit of simplifying and strengthening our balance sheet by eliminating approximately $76 million of high-interest capital lease liabilities," says Don Wood, president and CEO of Federal Realty.

"We look forward to attaining a higher level of achievement in leasing at these properties," says Matt Harding, Levin Management's president and COO. "To reinforce that, we intend to improve the look of each of these properties. This will range from simple deferred maintenance and minor cosmetics, to substantial renovation, wherever appropriate."