Thank you for sharing!

Your article was successfully shared with the contacts you provided.

CARLISLE, PA-Cedar Shopping Centers Inc., has completed due diligence for acquiring the 183,000-sf Point at Carlisle Plaza for $11 million, or just over $60 per sf. The closing is expected within 30 days.

A 60,000-sf Bon Ton’s and a 23,000-sf Office Max anchor the center, located at 800 E. High St. A 21,000-sf Dunham’s sporting goods store is scheduled to open this fall. During a recent conference call, Leo Ullman, CEO of the Port Washington, NY-based shopping center REIT, said the center “is expected to eventually be a candidate for substantial redevelopment and possible ‘de-malling,’ and affords us the opportunity of future value enhancement at this location,” which is just 12 miles west of its Camp Hill center. A call to Ullman was not returned by deadline.

According to published reports, the center was built in the late 1960s. The seller, an affiliate of Wexford-based Michael Joseph Development Corp., paid $5.8 million for the property in 2002 and redeveloped the asset.

The property is unencumbered, and Cedar expects to fund the acquisition from its existing floating-rate secured credit facility. In a statement, Ullman says, “it is being acquired at a very attractive yield, well in excess of 8%, unleveraged cash-on-cash.” The property is expected to become a collateral-based property under Cedar’s credit facility. Earlier this month, Cedar raised $83.5 million in a common stock offering.

After utilizing the proceeds from that offering to reduce the balance outstanding under the credit facility “in contemplation of certain reported acquisitions,” the statement says, “the credit facility presently has availability of $126 million.” The reported acquisition is an eight-property portfolio, which includes centers in Virginia and Pennsylvania, for an estimated $93.8 million. The Carlisle center along with another pending one will raise the REIT’s Pennsylvania portfolio to 30 properties.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper

GlobeSt. NET LEASE Spring 2021Event

This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector.

Get More Information


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.