Developers Diversified Realty (DDR), a Cleveland-based REIT that owns more than 62 million sq. ft. of retail real estate, yesterday announced five new additions to its growing portfolio. The properties were purchased in collaboration with DDR subsidiary Coventry Real Estate Partners, from Lehman Brothers. Lehman had acquired the properties out of foreclosure, and the price tag for DDR was $81.65 million.
The properties range in size from 133,814 sq. ft. to 557,051 sq. ft., totaling approximately 1.5 million sq. ft. Located in Fort Worth,, Columbia, SC, Birmingham, Alab., and Wichita, each property includes several national retailers.
Despite having these well-branded names as tenants, expect to see Coventry, which calls itself a value-addedfund, to attempt some improvements at the just-obtained locations. Coventry president Peter Henkel said, "We are excited about this acquisition because it represents a continuation of our strategy to acquire value-added real estate assets in partnership with Developers Diversified."