Acadia Realty Trust Provides Transactional Update
September 06 2019 - 9:53AM
Business Wire
Acadia Realty Trust (NYSE:AKR) (“Acadia” or the “Company”) today
announced that, subsequent to the second quarter of 2019, the
Company completed approximately $166 million of transactions. Year
to date, the Company has completed approximately $403 million of
transactions – $329 million of fund acquisitions and $74 million of
core transactions – with another $47 million under contract.
“We continue to find attractive deals to execute on our dual
platform mandate,” stated Kenneth F. Bernstein, President & CEO
of Acadia Realty Trust. “With respect to our fund platform, we have
identified and completed several attractive acquisitions that
should provide strong risk adjusted returns. At the same time, we
have added key assets with strong growth profiles to our existing
core markets.”
CORE PLATFORM
Core Acquisitions
47 Greene Street, New York, NY. In July 2019, the Company
acquired 47 Greene Street for $24.8 million in an off-market
transaction. 47 Greene Street is a 7,200 square-foot street retail
property located between Broome and Grand in the Soho neighborhood
of Manhattan. The property is 100% leased to Theory.
As previously announced, the Company has acquired, or entered
into contracts to acquire $121.6 million of New York City street
retail assets in Soho, consisting of the portfolio of $96.8 million
during the first quarter and an additional agreement of $24.8
million during the second quarter.
To date, of the $121.6 million, $74.4 million have closed and
$47.2 million currently remains under contract. The Company expects
to complete the remaining properties under contract in phases
through 2020.
FUND PLATFORM
Fund Acquisitions – High
Yield
Landstown Commons, Virginia Beach, VA. In August, Fund V
closed on the purchase of Landstown Commons, a 400,000 square-foot
shopping center located in Virginia Beach, VA for $87.0 million.
The property is anchored by strong retailers including Ross, Best
Buy, Ulta, Five Below, Old Navy and Dollar Tree. It benefits from
several submarket drivers within 5 miles of the asset including
Naval Station Oceana and several education and medical facilities.
As the dominant center in the region, this higher-yielding asset
has a diverse mix of necessity, entertainment, food and soft goods
retailers that complement the market.
Two Property Portfolio, Fredrick, MD. In August, Fund V,
in partnership with DLC Management Corp., closed on a two-asset
portfolio totaling $53.7 million dollars. The transaction
represents the second deal Acadia has done with DLC in as many
quarters, with Fund V serving as a 90% partner in the joint
venture. Both assets are in Fredrick, Maryland, a growing market
ideally positioned to act as a suburb to both Washington, DC and
Baltimore.
Frederick Crossing, a 300,000
square-foot center anchored by Kohl’s, Best Buy, Ross, and Dollar
Tree, was purchased for $32.4 million. The asset is the dominant
center in the market with above-average sales and strong stability
exhibited through several recent tenant renewals and
extensions.
Frederick County Square, a 225,000
square-foot Kmart anchored center was purchased for $21.3 million.
This center was purchased well below replacement cost at an
attractive yield affording the optionality to accretively redevelop
the center to take advantage of an increasing crop of tenants
interested in expanding into this growing market.
About Acadia Realty Trust
Acadia Realty Trust is an equity real estate investment trust
focused on delivering long-term, profitable growth via its dual –
core and Fund – operating platforms and its disciplined,
location-driven investment strategy. Acadia Realty Trust is
accomplishing this goal by building a best-in-class core real
estate portfolio with meaningful concentrations of assets in the
nation’s most dynamic urban and street-retail corridors; making
profitable opportunistic and value-add investments through its
series of discretionary, institutional funds; and maintaining a
strong balance sheet. For further information, please visit
www.acadiarealty.com.
Safe Harbor Statement
Certain matters in this press release may constitute
forward-looking statements within the meaning of federal securities
law and as such may involve known and unknown risks, uncertainties
and other factors that may cause the actual results, performances
or achievements of Acadia to be materially different from any
future results, performances or achievements expressed or implied
by such forward-looking statements. These forward-looking
statements include statements regarding Acadia’s future financial
results and its ability to capitalize on potential investment
opportunities. Factors that could cause the Company’s
forward-looking statements to differ from its future results
include, but are not limited to, those discussed under the headings
“Risk Factors” and “Management’s Discussion and Analysis of
Financial Condition and Results of Operations” in Acadia’s most
recent annual report on Form 10-K filed with the SEC on February
19, 2019 (“Form 10-K”) and other periodic reports filed with the
SEC, including risks related to: (i) political and economic
uncertainty; (ii) the Acadia’s reliance on revenues derived from
major tenants; (iii) Acadia’s limited control over joint venture
investments; (iv) Acadia’s partnership structure; (v) real estate
and the geographic concentration of Acadia’s properties; (vi)
market interest rates; (vii) leverage; (viii) liability for
environmental matters; (ix) Acadia’s growth strategy; (x) Acadia’s
status as a REIT; (xi) uninsured losses; (xii) information
technology security threats and (xiii) the loss of key executives.
Copies of the Form 10-K and the other periodic reports Acadia files
with the SEC are available on the Company’s website at
www.acadiarealty.com. Any forward-looking statements in this press
release speak only as of the date hereof. Acadia expressly
disclaims any obligation or undertaking to release publicly any
updates or revisions to any forward-looking statements contained
herein to reflect any change in Acadia’s expectations with regard
thereto or change in events, conditions or circumstances on which
any such statement is based.
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Sunny Holcomb (914) 288-8100
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