Wheeler Acquires Five Grocery-Anchored Properties in SC

VIRGINIA BEACH, VA-Wheeler Real Estate Investment Trust has acquired five Food Lion supermarket-anchored shopping centers in South Carolina for an aggregate purchase price of $15.8 million.

The acquired properties total 261,689 square feet and have an average occupancy rate of 91%. The deal, which calculates out to $60.38 per square foot, was financed by a combination of cash and debt, according to Wheeler. The Virginia Beach, VA-based firm says that it assumed and closed contracts previously entered into by affiliated company Wheeler Interests, LLC.

Jon S. Wheeler, chairman and CEO of Wheeler, said, “We feel that these properties are the perfect compliment to our existing portfolio, as they are necessity-based shopping centers located in tertiary markets with an average occupancy rate of 91%. Since going public in November 2012, the company has almost tripled the number of properties in its portfolio, maintained above average occupancy rates, and delivered consistent monthly dividends to shareholders. We expect this momentum to continue into 2014 and feel that the acquisition of this portfolio is a great way to close our book of business for the calendar year.”

The properties acquired by Wheeler include Clover Plaza, a 45,575 square-foot retail shopping center in Clover, SC that is 100% leased and anchored by a Food Lion grocery store, with nationally recognized tenants Subway and Pizza Hut also occupying the center. The shopping center was acquired for approximately $1.6 million, or $35.11 per square foot. The South Square Center, which was purchased for approximately $3.2 million, is a 44,350-square-foot retail shopping center located in Lancaster, SC. The Food Lion-anchored shopping center is 90% occupied by national tenants that include CVS Pharmacy and Subway. The St. George Plaza is a 59,279-square-foot shopping center located in Dorchester County, SC that is 86% leased and anchored by Food Lion subsidiary, Reid's Groceries. The shopping center was acquired for approximately $3.6 million.

Now part of the Wheeler portfolio is Waterway Plaza, a 49,750-square-foot shopping center in Little River, SC that is 98% leased and is also grocery anchored by Food Lion. Additional national and regional tenants at the property include Jackson Hewitt, Pizza Hut and Family Dollar. Waterway Plaza was acquired for approximately $3.6 million. The fifth property acquired by the Wheeler REIT is Westland Square, a 62,735-square-foot grocery-anchored shopping center located in West Columbia, SC. The property is 83% leased and tenants include Food Lion, Family Dollar and Check 'n Go. The property was acquired for approximately $3.8 million, or $60.57 per square foot.