By Linda Moss CoStar News
Urban Edge Properties has closed on the sale of two shopping centers in North Jersey and the Philadelphia suburbs for roughly $41 million as it sheds noncore properties.
In one deal, the New York-based real estate investment trust last month sold a retail property to one of the site's tenants for $23.2 million, according to public documents. Grocer Food Bazaar, headquartered in Brooklyn, New York, acquired Kennedy Commons on Kennedy Boulevard in North Bergen, New Jersey, for $23.2 million from Urban Edge. Food Bazaar has a store at the roughly 62,000-square-foot center, and Popeyes Louisiana Kitchen also as eatery there, according to CoStar data.
And in a separate transaction in June, Urban Edge sold MacDade Commons in Glenolden, Pennsylvania, to Agree Realty for $18 million, according to public documents. That roughly 102,000-square-foot retail property is anchored by a Walmart store, according to CoStar. Agree is a REIT based in Royal Oak, Michigan.
Urban Edge declined to comment Wednesday.
But in an investor presentation this month, Urban Edge said it is undertaking "strategic capital recycling," by selling noncore, low-growth properties and acquiring high-quality shopping centers.
When it reported its first-quarter earnings in April, the REIT said it had two properties under contract for a combined sale price of $41.2 million. But it didn't identify the properties.
“Our capital recycling efforts are advancing with $66 million of assets sold or under contract at a weighted average capitalization rate of 5%," Urban Edge Chairman and CEO Jeff Olson said in a statement on the first quarter. "Our team is focused on continuing to execute on our strategic plan, capitalizing on the robust demand in our markets through our leasing, redevelopment, and investment strategies.”
The REIT is scheduled to report its second-quarter results July 30.
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