Jones Lang LaSalle

GlobeSt.com UPDATE: Cedar Completes Mall Acquisition
By Eric Peterson
Last updated: February 2, 2006 10:05am

(For more retail coverage, click GlobeSt.com/RETAIL.)
EGG HARBOR TWP., NJ-Cedar Shopping Centers Inc. has completed its acquisition of Shore Mall, a one-level, 620,000-sf enclosed mall here, paying $33.65 million for the 75-acre property. As reported by GlobeSt.com, the Port Washington, NY-based REIT went under contract on the property in early January. Officials of the company say they expect to close, as well, on the acquisition of an adjacent 50-acre undeveloped site “during the next few days.” Sale price for the site is $2 million.

The sellers of both the mall and the adjacent site are partnerships in which Cedar CEO Leo Ullman is a limited partner. The partnerships had owned Shore Mall for nearly two decades and Cedar Shopping Centers managed the property during that period.

The purchase price is being funded by assumption of nearly $31 million in first mortgage financing at 7.01%, due August 2008, according to Tom O’Keeffe, Cedar’s CFO. The remainder of the purchase price is being funded by the company’s revolving credit facility. Cedar is also taking on certain installment payments totaling $3.1 million, payable through 2009 to the holder of preferred partnership interests.

Shore Mall is anchored by a 167,299-sf Boscov’s department store, which will be expanded by another 12,400 sf later this year. Other anchors include a 144,000-sf Value City store and an 85,000-sf Burlington Coat Factory; all three recently extended their leases. Cedar officials say the adjacent site, its sale pending, has a build-out capability of another 200,000 sf of retail.