Wheeler Real Estate Investment Trust, Inc. Completes the Acquisition of Franklin Village Located in Kittanning, Pennsylvania
December 13 2016 - 8:05AM
Company acquires first asset in Pennsylvania and
is now represented in twelve states and adds 2nd Shop ‘n Save
to its portfolio.
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 Franklin Village, a
grocery-anchored shopping center previously announced as an
acquisition target.
The Company acquired Franklin Village, a 151,673
square foot shopping center anchored by Shop ‘n Save, located in
East Franklin Township, Kittanning, PA. The property is located
approximately 40 miles northeast of Pittsburgh, PA. Shop ‘n Save
has over 10 years remaining on its lease with two five-year renewal
options and operates an unattached fuel station on a coterminous
ground lease. The property is 98% occupied and is co-anchored by
Big Lots, which occupies 30,174 square feet and Tractor Supply
occupying 23,876 square feet. The center also includes
national retailers such as Dollar General and Advance Auto Parts.
Total acquisition value of the property was
$13.1 million, or $86.37 per leasable square foot, which the
Company financed using a combination of cash and ten-year interest
only debt. The cap rate on the Franklin Village was 8%, and the
loan-to-value and interest rate on the debt employed was 65% and
4.93%, respectively. Jon S. Wheeler, Chairman and Chief
Executive Officer of Wheeler, stated, “I am very excited to be
entering the state of Pennsylvania with our latest acquisition. We
have wanted to strategically expand our footprint further up the
East Coast and Franklin Village, just outside of Pittsburgh, we
believe is a strong start in that target market. We are acquiring
this asset at a discount to replacement cost and will be adding our
second Shop ‘n Save to the portfolio of sixty-two retail centers.
We are eager to further diversify the portfolio both with new
tenants and geographical locations as we grow. We have now acquired
twenty assets this year, making it our largest year for
acquisitions to date.”
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: (i)
the future generation of financial returns from the acquisition of
‘necessity based’ retail focused properties; (ii) the anticipated
implementation of the Company’s acquisition strategy, including its
ability diversify its portfolio both with new tenants and
geographical locations; and (iii) the Company’s anticipated ability
to produce returns and growth for the Company and its shareholders
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
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