Wheeler Real Estate Investment Trust, Inc. Completes Sale of Non-Core Property for $2.1 Million
June 29 2016 - 4:13PM
Wheeler Real Estate Investment Trust, Inc.
(NASDAQ:WHLR) (“Wheeler” or the “Company”), a fully-integrated,
self-managed commercial real estate investment company focused on
acquiring and managing income-producing retail properties with a
primary focus on grocery-anchored centers, announced today it has
completed the sale of another free standing retail property as part
of its disposition strategy announced in 2015, Starbucks/Verizon,
as part of a 1031 Exchange. The buyer in the leasehold interest
only sale was the Niki Group, LLC, a leading real estate investment
company.
Wheeler sold the Starbucks/Verizon property at a
premium for an acquisition value of approximately $2.1 million and
at a weighted-average capitalization rate of 6.1%, based on a net
operating income for the trailing twelve months. The Company
originally acquired the asset in October 2013 for $1.4 million
which equates to a weighted-average capitalization rate of
7.5%.
Jon S. Wheeler, Chairman and Chief Executive
Officer, stated, “The sale of the Starbucks/Verizon property is
another significant step forward in the execution of the Company’s
strategy to streamline its acquisition focus and monetize non-core
assets. We purchased Starbucks/Verizon only two and half years ago
at a cap rate to the trust of 7.5% and in turn will be able to
directly re-invest in our specialized markets while continuing to
generate significant returns for our investors.”
The property is located in the city of Virginia
Beach, Virginia and totals approximately 5,600 of gross leasable
square feet. The Starbucks/Verizon property was listed for sale
along with seven other non-core assets in the Company’s property
portfolio of which three were sold in October 2015 and another two
are under contract to close in 2017.
About The Niki GroupThe Niki
Group is a boutique real estate investment company that provides
sale-leaseback financing and invests equity with seasoned,
professional development partners. Retailers and restaurant
operators use the firm’s net lease programs to finance acquisitions
and accelerate growth. The Niki Group actively invests in all areas
of real estate, development projects, and tenant industries.
About Wheeler Real Estate Investment
Trust, Inc.Headquartered in Virginia Beach, VA, Wheeler
Real Estate Investment Trust, Inc. is a fully-integrated,
self-managed commercial real estate investment company focused on
acquiring and managing income-producing retail properties with a
primary focus on grocery-anchored centers. Wheeler’s portfolio
contains well-located, potentially dominant retail properties in
secondary and tertiary markets that generate attractive,
risk-adjusted returns, with a particular emphasis on
grocery-anchored retail centers.
Additional information about Wheeler Real Estate
Investment Trust, Inc. can be found at the Company’s corporate
website: www.whlr.us.
Forward-Looking StatementThis
press release may contain “forward-looking” statements as defined
in the Private Securities Litigation Reform Act of 1995. When the
Company uses words such as “may,” “will,” “intend,” “should,”
“believe,” “expect,” “anticipate,” “project,” “estimate” or similar
expressions that do not relate solely to historical matters, it is
making forward-looking statements. Forward-looking statements
are not guarantees of future performance and involve risks and
uncertainties that may cause the actual results to differ
materially from the Company’s expectations discussed in the
forward-looking statements. The Company’s expected results
may not be achieved, and actual results may differ materially from
expectations. Specifically, the Company’s statements regarding its
ability to implement its strategy to streamline its acquisition
focus and monetize non-core assets and its ability to reinvest the
proceeds and generate returns for investors are forward-looking
statements. These statements are not guarantees of future
performance and are subject to risks, uncertainties and other
factors, some of which are beyond our control, are difficult to
predict and could cause actual results to differ materially from
those expressed or forecasted in the forward-looking statements.
For these reasons, among others, investors are cautioned not to
place undue reliance upon any forward-looking statements in this
press release. Additional factors are discussed in the Company's
filings with the U.S. Securities and Exchange Commission, which are
available for review at www.sec.gov. The Company undertakes no
obligation to publicly revise these forward‐looking statements to
reflect events or circumstances that arise after the date
hereof.
CONTACT:
Wheeler Real Estate Investment Trust, Inc.
Wilkes Graham
Chief Financial Officer
(757) 627-9088
wilkes@whlr.us
Laura Nguyen
Director of Capital Markets
(757) 627-9088
lnguyen@whlr.us
Robin Hanisch
Corporate Secretary
(757) 627-9088
robin@whlr.us
-OR-
INVESTOR RELATIONS:
The Equity Group Inc.
Terry Downs
Associate
(212) 836-9615
tdowns@equityny.com
Adam Prior
Senior Vice-President
(212) 836-9606
aprior@equityny.com
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