Tuesday, July 12, 2022

Cedar Realty Trust Sells 33 Shopping Centers for $879 Million

 By Mark Heschmeyer CoStar News

A deal for a portfolio of grocery-anchored shopping centers moves Cedar Realty Trust closer to completing the sale of itself and its remaining real estate to Wheeler Real Estate Investment Trust.

The sale of Cedar’s Northeast U.S. portfolio to DRA Advisors and KPR Centers for $879 million including assumed debt is the first step in the process.

Long Island, New York-based Cedar sold the portfolio of 33 centers and a redevelopment property to a joint venture fund managed by DRA.

Cedar previously announced the sale of itself and its assets in a series of related all-cash transactions to four different buyers, including Wheeler. The process is expected to be completed within four to six weeks, Cedar said in a release.

Cedar and DRA did not immediately respond to requests for additional information.

The deals, which combined amount to more than $1.2 billion, follow the real estate investment trust’s dual-track review of strategic alternatives last year.

Believing the real estate it owns is undervalued, In September they began exploring the sale of its entire portfolio of 53 primarily Northeastern U.S. shopping centers that collectively span more than 7.6 million square feet.

Investors are snapping up shopping centers with grocery stores as anchors because that type of tenant sparks repeat visits and generates foot traffic at a property — attributes that have become all the more valuable during the COVID-19 pandemic.


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