Wheeler Real Estate Investment Trust, Inc. Completes the Acquisition of Laburnum Square Located in Richmond, Virginia
December 08 2016 - 8:05AM
Consideration paid for the property included
$836,000 of 1031 Exchange Funds from the previous sale of the
Starbucks/Verizon property sold in June 2016
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, today reported that the
Company has closed on the acquisition of Laburnum Square, a
grocery- anchored shopping center previously announced as an
acquisition target.
The Company acquired Laburnum Square, a 109,405
square foot, 97% occupied grocery-anchored neighborhood center
located in Richmond, VA. Kroger, a national grocer, anchors the
center, occupying 45,175 square feet with a lease term through 2023
and three remaining five-year renewal options available. Other
tenants include national and regional retailers such as Dollar
General and Taylors Do-It Center. The property is located in
Richmond, Virginia’s East End, approximately 1.5 miles from
Richmond International Airport. With the addition of Laburnum
Square, the Company now owns 61 retail centers in 11 states and
approximately 4.1 million square feet of gross leasable
area.
Total acquisition value of the property was
$10.5 million, or $95.97 per leasable square foot, which the
Company financed using a combination of cash that included $836,000
of 1031 Exchange Funds, and the Company’s Key Bank credit facility
with an interest rate of 30 day LIBOR plus 250 basis points.
The cap rate for the acquisition was 8.1%, and the loan-to-value
was 65%. Jon S. Wheeler, Chairman and Chief Executive
Officer of Wheeler, stated, “The acquisition of Laburnum Square
brings our Virginia asset count to fifteen properties including
nine retail properties, five land parcels and one office
building. Laburnum Square is located near our other Richmond
property, Brook Run Shopping Center, and is approximately ninety
minutes from our headquarters, providing us more efficiencies to
operate and manage the center. We continue to deploy capital into
what we believe to be accretive assets, and covering our dividend
of $0.21 on an annualized basis on a pro forma basis in the fourth
quarter of 2016 is within our sights. Increasing shareholder value
has always been at the forefront of our business.”
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 contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Act of 1934, as amended,
including but not limited to, (i) the future generation of
financial returns from the acquisition of ‘necessity based’ retail
focused properties; (ii) the Company’s ability to cover its
dividend of $0.21 annualized on a pro forma basis in the 4th
quarter of 2016; (iii) the anticipated implementation of the
Company’s acquisition strategy; (iv) the Company’s anticipated
ability to produce returns and growth for the Company and its
shareholders; and (v) the Company’s ability to deploy capital
in what it believe to be accretive assets. These
forward-looking statements are not historical facts but are the
intent, belief or current expectations of management based on its
knowledge and understanding of our business and industry.
Forward-looking statements are typically identified by the use of
terms such as “may,” “will,” “should,” “potential,” “predicts,”
“anticipates,” “expects,” “intends,” “plans,” “believes,” “seeks,”
“estimates,” or the negative of such terms and variations of these
words and similar expressions. 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.
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)
627-9088robin@whlr.us
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