Beachwood, Ohio — DDR Corp. has announced that it sold 14 non-prime assets in the first quarter for gross proceeds of $198 million. The company’s share of the proceeds totaled $142 million. In addition, DDR currently counts 14 non-prime operating assets valued at $97 million and $36 million of non-income producing assets currently under contract. DDR expects its share of the proceeds from these transactions to come to $103.
Of the operating assets sold or under contract, 22 are small-format neighborhood centers or single tenant assets under 135,000 sq. ft. These sales align with DDR’s investment strategy of owning large format, prime power centers in top MSA’s.
The non-prime operating assets sold and under contract average less than $9.50 per sq. ft. in rents, approximately 35% below the DDR average prime rent. These properties also feature trade area average annual household incomes less than $70,000. Average DDR trade area average for prime properties is $81,000.