Beachwood, Ohio — DDR Corp. has announced the closing of its previously announce acquisition activity totaling $591 million. The acquisitions include a portfolio of seven prime power centers in a newly-formed joint venture with an affiliate of Blackstone Real Estate Partners VII L.P. for $332 million in August and two market dominant regional power centers in Orlando, Fla. and Atlanta, Ga., for an aggregate $259 million in July.
The seven shopping centers acquired with Blackstone encompass 2.4 million sq. ft. of GLA. Blackstone owns 95% of the common equity in the joint venture, and DDR owns 5%. DDR provides leasing and management services. The assets are located in supply constrained metro areas including Los Angeles, San Diego, Washington, D.C., Portland and Cincinnati. All feature high-quality retailers such as Target, Wal-Mart, Ross Dress for Less, Dick’s Sporting Goods, Petco, Best Buy, Wegmans and The Fresh Market. The portfolio is 93% leased and presents redevelopment and leasing opportunities that should allow DDR’s operating platform to add additional value.
The power center acquisitions include Winter Garden Village in Orlando, a 1.1 million-sq.-ft. center with Target, Lowe’s, Marshalls/HomeGoods, Best Buy, Ross Dress For Less, Bed Bath & Beyond, Sports Authority, Staples, PetSmart, World Marketr, Old Navy and Ulta. Winter Garden will benefit from additional traffic in future years as a Florida hospital just broke ground on a medical campus adjacent to the shopping center.
Cumming Town Center is a 311,000-sq.-ft. regional power center in a northeastern suburb of Atlanta near DDR’s exiting Cumming Marketplace shopping center. It is 100% leased and is anchored by DICK’S Sporting Goods, T.J.Maxx/HomeGoods, Best Buy Staples, Old Navy and Petco.
Also during the third quarter, DDR disposed of $138 million of non-prime assets, of which $104 million was the company’s share.