DDR Provides Update and Expands Strategic Redevelopment Initiative in Puerto Rico
DDR (NYSE: DDR) is pleased to announce the successful completion and further expansion of redevelopment activity at four prime assets in Puerto Rico. As a result of strong tenant demand and the successful execution of previously announced projects, DDR has expanded its redevelopment program on the island from $50 million to $90 million.
"Increased demand for quality retail space in this supply-constrained market has created unique value-add opportunities in many of our most productive assets," said Paul Freddo, senior executive vice president of leasing and development for DDR. "By executing our strategic redevelopment plan, we are creating attractive opportunities for our key domestic tenants to establish or expand their presence on the island."
The following projects highlight DDR's redevelopment initiative in Puerto Rico:
Plaza del Sol, a 690,000 square-foot enclosed mall anchored by Walmart, Home Depot, Bed Bath & Beyond, Caribbean Cinemas and Old Navy, features a new 10,500 square-foot food court which was relocated from the lower level to the upper level of the mall. With this relocation, DDR has improved the merchandising offering and credit quality of food court tenants, and will add 25,000 square feet of new in-line retail space through the highly trafficked lower level corridor to replace the former food court. With its center court location, DDR is excited to introduce several new best-in-class tenants including Victoria's Secret, Bath & Body Works, Claire's, Sketchers and Aeropostale.
Phase two of Plaza del Sol's redevelopment will include the construction of approximately 137,000 square feet of new GLA to accommodate the expansion of a key anchor as well as construction of additional junior anchor boxes with an expected completion in the Fall of 2014.
At Rexville Plaza, a 131,000 square-foot community center, the Company has successfully completed the addition of a new Marshalls and CVS, which replaced an underperforming Pueblo Supermarket. By proactively terminating a lease with an underperforming tenant, the Company has increased NOI by more than 10%, improved the credit quality of cash flow and created the catalyst for the consolidation of two small shop units to accommodate a new Anna's Linens and the lease up of adjacent retail space.
The transformation at Plaza del Norte, a 680,000 square-foot enclosed mall anchored by Walmart, Sears, JCPenney, T.J.Maxx and Rooms to Go, includes the consolidation of three vacant small shop units to accommodate a new PetSmart as well as a new Caribbean Cinemas theater on the upper level. Through these renovations and improvements, DDR was able to attract a variety of new retailers, including Shoe Carnival, Carter's, Journey's Kidz, Crocs, Van Heusen, Ecko Unlimited and Robert Wayne Footwear. Additional value creation will come from a new outparcel for Krispy Kreme, which is expected to open in the Fall of 2013.
The redevelopment of Plaza Fajardo, a 250,000 square-foot power center anchored by Walmart and Econo Supermarket, will include the construction of two new box spaces for PetSmart and Shoe Carnival, both of which are expected to open in the Fall of 2013. These new stores represent PetSmart's fifth and Shoe Carnival's third location in a DDR center on the island, highlighting the Company's ability to facilitate the expansion of top domestic tenants into the Puerto Rico market.
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