The public/private consolidation continues. Developers Diversified Realty has announced that it is buying Benderson Development Co.'s 18.8 million sq. ft. portfolio of shopping centers for $2.3 billion.

The transaction, which represents an 8% cap rate, includes 110 centers mostly located in New York and New Jersey and will boost Developers Diversified's portfolio to more than 100 million sq. ft., making the Cleveland, Ohio-based company the third largest owner of retail GLA in the United States and the largest owner of grocery-anchored, power and community centers.

Developers Diversified will fund the acquisition through a combination of assumed debt, new debt financing, asset sales and equity from public and private sources, potentially including its joint venture with Australian partner Macquarie. Benderson will retain a portfolio of 23 million sq. ft. of non-retail commercial properties and will retain a 2% interest in certain assets to be sold to Developers Diversified.