Ramco-Gershenson Announces Definitive Agreements to Acquire Four Multi-Anchored Shopping Centers in Major Markets
Ramco-Gershenson Properties Trust (NYSE: RPT) announced today that it has entered into definitive purchase agreements to acquire four shopping centers in Colorado, Missouri and Wisconsin. The acquisitions are subject to customary closing conditions.
The closings of the purchases are expected to occur in late May or early June 2012. It is anticipated that the purchases will be all cash transactions.
Harvest Junction North and South are regional community centers in the metropolitan Boulder, Colorado area. The purchase prices for Harvest Junction North and Harvest Junction South are approximately $35.5 million and $33.7 million, respectively. Combined, the two shopping centers encompass 327,875 square feet and feature a dynamic line up of national, creditworthy retailers, including Bed Bath & Beyond, Marshalls, Ross Dress for Less, DSW Shoe Warehouse, Dick's Sporting Goods, Lowe's (anchor-owned), Best Buy, Michaels, Staples, ULTA Beauty, Dollar Tree and PETCO. The shopping centers were built in 2006. In addition to the acquisition of Harvest Junction North and South, which are currently 96% leased, the Company is under contract to purchase an additional 14 acres of land adjacent to Harvest Junction North for a purchase price of approximately $2.7 million, for future expansion. Harvest Junction North and South are located at the high traffic intersection of Ken Pratt Boulevard and South Main Street in Longmont, Colorado. The shopping centers are part of a growing and affluent trade area. Over 30% of the households have an average income that exceeds $100,000 and the three-mile population is expected to grow approximately 4% over the next five years.
Central Plaza is located in metropolitan St. Louis, Missouri. The purchase price for Central Plaza is approximately $21.6 million. A retenanting of the shopping center was completed this year to include a new Ross Dress for Less and buybuy Baby. The 166,468 square foot center is also anchored by Office Max and JoAnn Fabrics. Central Plaza, currently 100% leased, marks the Company's third acquisition in the metropolitan St. Louis market. Central Plaza is located on the northeast quadrant of Manchester Road and Vlasis Drive, approximately 20 miles west of downtown St. Louis in the suburb of Ballwin. The three-mile trade area population is 78,000 and has an average household income of $102,000.
Nagawaukee Shopping Center is located in the greater Milwaukee, Wisconsin area. The purchase price for Nagawaukee Shopping Center is approximately $15.1 million. The 113,617 square foot shopping center is anchored by a Kohl's Department Store and complemented by Bath & Body Works, GNC, Maurice's, the UPS Store and Cost Cutters. The center is also anchored by a 60,000 square foot Sentry Supermarket, which is not part of the acquisition. Nagawaukee Shopping Center is Ramco-Gershenson's third property in the greater Milwaukee area and its fourth asset in the state of Wisconsin. The shopping center is located at the northeast quadrant of Interstate 94 and Highway 83 in Delafield, one of the most affluent suburbs of Milwaukee with an average three-mile household income of $105,000.
The Company also announced the sale of two non-core shopping centers located in Florida, Pelican Plaza and Southbay Shopping Center, which generated net proceeds of approximately $5.4 million.
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