DDR Buys Out Partner on Centers for $70M

(ICSC RECON is coming up and GlobeSt.com has a month of special coverage in the works.  Don’t miss a bit of it. Click here for more information.) 

BEACHWOOD, OH-DDR Corp. has bought the full ownership of two retail centers it had owned jointly with New York City-based DRA Advisors LLC. The 50% interest in Tanasbourne Town Center in Portland and Arrowhead Crossing in Phoenix was purchased for $70 million.

According to a DDR statement, the locally based mall REIT funded its investment with proceeds from the issuance of 4.8 million common shares through its at-the-market common equity program. At closing, $104 million of mortgage debt was repaid.

The 566,000-square-foot Tanasbourne is 97% leased, and includes tenants such as anchors Target, Nordstrom Rack and Bed Bath & Beyond. Arrowhead totals 412,000 square feet and is 96% leased, anchored by tenants such as Nordstrom Rack, DSW, Homegoods and Staples.

Trust officials said in the statement that the company’s management of the properties since 1996 provided confidence to make the deal. David Oakes, CFO, said financing properties with equity proceeds will allow the firm to grow its pool of wholly-owned assets. The trust is owner and manager of 481 centers in 39 states, Puerto Rico and Brazil.