Wheeler REIT Buys 14-Asset Portfolio for $71M

VIRGINIA BEACH, VA—Wheeler REIT, which has been building up its portfolio over the last few years steadily acquiring one or two assets at a time, has scooped up a 14-property portfolio for $71 million, or $117.72 per leasable square foot. It is the REIT's largest acquisition to date.

The grocery-anchored shopping centers are located in South Carolina and Georgia. It totals about 603,142-square feet and is 92% leased. The anchors are typically Harris Teeter, Bi-Lo and Piggy-Wiggly.

This was a stock-and-cash deal for Wheeler REIT, which secured increases in its credit facility and a term loan for a total of $68 million. Specifically, the company increased its $45 million revolving credit line with KeyBank National Association to approximately $67.2 million, priced at 500 basis points above 30-day Libor. It also secured an $8 million term loan with Revere High Yield Fund, LP at 8% interest. The reminder will be funded with 888,889 units of its operating partnership, valued at $2.25 per unit.

With this deal Wheeler now has 56 retail properties in its portfolio, as well as 81 acres of development property.

In a prepared statement, CEO Jon S. Wheeler said the acquisition “will bring us that much closer towards dividend coverage in the second half of 2016.”

VIRGINIA BEACH, VA—Wheeler REIT, which has been building up its portfolio over the last few years steadily acquiring one or two assets at a time, has scooped up a 14-property portfolio for $71 million, or $117.72 per leasable square foot. It is the REIT's largest acquisition to date.

The grocery-anchored shopping centers are located in South Carolina and Georgia. It totals about 603,142-square feet and is 92% leased. The anchors are typically Harris Teeter, Bi-Lo and Piggy-Wiggly.

This was a stock-and-cash deal for Wheeler REIT, which secured increases in its credit facility and a term loan for a total of $68 million. Specifically, the company increased its $45 million revolving credit line with KeyBank National Association to approximately $67.2 million, priced at 500 basis points above 30-day Libor. It also secured an $8 million term loan with Revere High Yield Fund, LP at 8% interest. The reminder will be funded with 888,889 units of its operating partnership, valued at $2.25 per unit.

With this deal Wheeler now has 56 retail properties in its portfolio, as well as 81 acres of development property.

In a prepared statement, CEO Jon S. Wheeler said the acquisition “will bring us that much closer towards dividend coverage in the second half of 2016.”