Cedar Swallows Up Another 1.2M SF of Retail Space

PHILADELPHIA-Port Washington, NY-based Cedar Shopping Centers Inc. is rapidly expanding its presence in the eastern half of this state with announcement of an agreement to acquire ownership or controlling operating interests in eight properties, seven of which are in PA. The anticipated price for all eight, which have an aggregate of approximately 1.3 million sf, is $150 million.

Three of the shopping centers are in Philadelphia. They are: South Philadelphia Shopping Center, a 283,000-sf property anchored by Shop Rite, Drug Emporium, Bally’s Total Fitness, and Ross Stores; Columbus Crossing, a 142,200-sf center anchored by a Super Fresh supermarket, Old Navy, A.C. Moore, and Famous Footwear, and River View Plaza I, II, and III, a combination of three adjacent retail properties with an aggregate of approximately 246,800 sf. River View anchors are a United Artists theater, Sega Gameworks, Staples, West Marine, Pep Boys, and Athlete’s Foot.

Two of the acquisitions are in Huntingdon, PA. They are: Huntingdon Plaza, a 92,000-sf community shopping center anchored by Peebles, Auto Zone and Family Dollar Stores, and Lake Raystown Plaza, an 84,300-sf community shopping center anchored by a Giant supermarket, Rite Aid and Fashion Bug.

The 221,500-sf Golden Triangle Shopping Center in Lancaster, PA is also a part of the portfolio. Anchors are Marshall’s and Staples. This center is currently owned by affiliates of a principal shareholder of Cedar.

In addition, Cedar will acquire the remaining 50%-interest in The Point Shopping Center in Harrisburg. Currently, it is 50% owned by Cedar and 50% owned by affiliates of a principal shareholder of the company.

The sole out-of-state property in the portfolio is Wal-Mart Shopping Center, a 155,000-sf community center in Southington, CT, anchored by a 95,000-sf Wal-Mart.

The eight properties are under different ownership entities. Further details are unavailable because, at the same time the acquisition was announced, Cedar also filed a registration statement with the SEC in connection with an initial public offering of its common stock on the NYSE. Shares are currently traded on the NASDAQ under CEDR.

Cedar also has a 15-month option agreement to buy a 16.5-acre development site near Hershey, PA, with plans to build a 120,000-sf shopping center. Currently Cedar owns 14 properties, aggregating approximately 2.3 million sf, primarily in eastern Pennsylvania.