Cedar Shopping Centers, Inc. announced this week that it is selling all of its 17 properties located in Ohio. 14 of the properties are anchored by Discount Drug Mart. The sale is valued at $45 million, which Cedar hopes will reduce its debt by $30 million.
Nickleplate Realty Trust, LLC out of Canton, Ohio is purchasing the properties, two of which closed on March 30, 2011. The remainder will close under the normal conditions and lender consent, possibly within the third quarter.
This year we have witnessed many companies begin to offload their real estate in order to recover some of their serious debt, with some also narrowing their market focus and letting go of properties that may have been beyond their financial wherewithal to maintain.
“The disposition of these properties represents an integral part of the Company’s long-term business plan. This strategy includes disposing of smaller properties in secondary markets as the Company upgrades its portfolio, further de-levering its balance sheet, emphasizing ownership of larger properties in higher demographic areas with strong creditworthy tenancies, and thus incorporating additional opportunities for growth,” said Leo S. Ullman, Chairman and CEO of Cedar.
Cedar Shopping Centers, Inc. is a real estate investment trust that owns, operates, develops, and redevelops shopping centers anchored by supermarkets in mid-Atlantic and New England states. Currently, Cedar owns approximately 16.1 million square feet of real estate in 131 shopping centers. Over 75% of their properties are anchored by drugstores and/or shopping centers.