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DENVER-Locally headquartered Dividend Capital Total Realty Trust has acquired a 90% interest three Target-anchored retail centers from Cleveland-based Developers Diversified for $161.5 million. The centers total 1.5 million sf (675,000 sf owned). The transaction was announced late last month.

The properties are Beaver Creek Commons, a 452,383-sf center in Raleigh, NC that is anchored by Super Target and Lowe’s; Mt. Nebo Point, a 362,832-sf center in Pittsburgh anchored by Sam’s Club and Target; and Centerton Square, a 710,159-sf center in Philadelphia anchored by Costco and Target.

Developers Diversified, which estimates its pre-tax gain on the sale at $50 million, retains a 10% in the properties while maintaining the fee-based income for asset management, property management and leasing. The publicly held owner of some 800 retail properties also will receive a promoted interest above a 9.5% leveraged threshold return.

Dividend Capital chairman John Blumberg calls the new partnership with DDR “an important step in gaining potential access to additional opportunities.” All told, the non-listed REIT has approximately $772 million invested in 24 diversified real property assets and various real estate securities and debt related investments.

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