DDR Corp. has acquired its joint venture partner's 50 percent ownership interest in two high quality prime power centers located in Portland, Oregon and Phoenix for $70 million. The company funded its entire $70 millionwith proceeds from the issuance of 4.8 million common shares through its at-the-market common equity program. At closing, $104 million of mortgage debt was repaid, and these shopping centers are now wholly owned by DDR and part of the company's unencumbered asset pool.
"This transaction is another example of our continued effort to creatively source transactions that allow us to grow our prime portfolio while improving our balance sheet and simplifying our story,” DDR President and CEO Daniel B. Hurwitz said in a statement. “Furthermore, our knowledge and familiarity of the assets reduces risk and give us confidence in the long-term growth profile of each property."
Tanasbourne Town Center, located in Portland, is a large-format power center totaling 566,000 sq. ft. and is currently 97 percent leased. It benefits from a strong credit tenant lineup, enjoys significant barriers to entry and has household incomes of over $84,000 and a population of 376,000 within a seven mile radius. The shopping center is anchored by tenants such as Target, Nordstrom Rack, Bed Bath & Beyond, Ross Dress For Less, Michaels, Old Navy and Petco. DDR has managed and leased the center since 1996.
Arrowhead Crossing, located in Phoenix, is a large-format power center totaling 412,000 sq. ft. and is currently 96 percent leased. The shopping center is anchored bytenants such as Nordstrom Rack, DSW, T.J.Maxx, HomeGoods, Staples and Hobby Lobby. This prime asset enjoys strong barriers to entry and has household incomes over $73,000 and a population of 582,000 within a seven mile radius. DDR has managed and leased the center since 1996.