Retail Opportunity Closes Gateway Village Acquisition
On December 16, 2010, the company completed the acquisition of Gateway Village, a 91 percent occupied grocery anchored neighborhood shopping center located in Chino Hills, California for an aggregate purchase price of $34m.
The company assumed the sellers' obligations under three existing loans totaling approximately $21.8m carrying a blended 5.8 percent interest rate and maturing between 2014 and 2016. The 96,959 square foot shopping center is anchored by Henry's Marketplace (Smart & Final).
On December 22, 2010 the company closed on the acquisition of two grocery anchored neighborhood shopping centers in Oregon for an aggregate purchase price of $18m. The assets, Division Crossing and Halsey Crossing further enhance the company's footprint in Oregon and the greater Pacific Northwest.
Halsey is a grocery-anchored neighborhood shopping center of approximately 99,438 square feet and was acquired for $7m. It is anchored by Safeway and is currently 89.6 percent leased and subject to a ground lease that expires on June 1, 2069.
Halsey is located in an area with approximately 275,215 people within a five mile radius, with an average household income of approximately $62,078.
On December 16, 2010, the company acquired four loans for an aggregate purchase price of $50m, which represents approximately a 14 percent discount to the aggregate outstanding principal amount owed under the loans.
Stuart Tanz, CEO of Retail Opportunity Investments Corporation, said: “We are pleased to announce the closing of the three dominant grocery anchored shopping centers, continuing our strong acquisition pace for the year.
“We believe these acquisitions demonstrate our ability to execute our business plan of capitalizing on opportunities to acquire irreplaceable real estate. We are also pleased to acquire additional mortgages secured by strong retail properties at a discount to their face value.”
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