BEACHWOOD, Ohio, May 18, 2011 /PRNewswire/ -- Developers
Diversified Realty Corporation (NYSE: DDR) today announced plans to
raze the Terrell Plaza shopping center in San Antonio, Texas and the existing two-story
enclosed mall at Tamarac Square in Denver, Colorado to allow for the sale of
these non-income producing parcels to Target for the construction
of two new stores. DDR intends to redevelop adjacent retail space
at both centers to accommodate demand from additional high-quality
retailers.
"The redevelopment of two non-income producing assets into prime
shopping centers is a perfect example of the continued execution of
our redevelopment strategy. We anticipate many similar projects to
commence as we focus on redevelopment as a driver of corporate
growth," said Paul Freddo, senior
executive vice president of leasing & development for DDR.
The combined gross investment for the two projects is
$40 million. Net of land sales and
project reimbursements, the company's investment is approximately
$20 million, and the returns are
expected to exceed the company's 10 percent return threshold for
redevelopment investments. The projects will be funded with
retained cash flow and recycled capital from the continued
disposition of non-prime assets.
Terrell Plaza is currently a poorly-configured shopping center
in a well-established neighborhood of San
Antonio with population density exceeding 540,000 people
within a seven-mile trade area. When redeveloped, the shopping
center will feature approximately 90,000 square feet of
value-oriented junior anchor retail space in addition to the new
138,000 square-foot Target.
Tamarac Square is currently a 90 percent vacant enclosed mall in
an in-fill location and the redevelopment will provide Target
access to an attractive, high barrier-to-entry market with
population density exceeding 720,000 people within a seven-mile
trade area. Upon completion of the 135,000 square-foot store and
the renovation of the adjacent 33,000 square-foot convenience
center, the project will be 98 percent leased.
About Developers Diversified Realty
Developers Diversified owns and manages approximately 520 retail
properties in 41 states, Puerto
Rico and Brazil totaling
approximately 127 million square feet. The Company's prime
portfolio features open-air, value-oriented shopping centers in
high barrier-to-entry markets with stable populations and high
growth potential. Developers Diversified is the largest landlord in
Puerto Rico and owns a premier
portfolio of regional malls primarily clustered around Sao Paulo, Brazil. Developers Diversified is a
self-administered and self-managed REIT operating as a fully
integrated real estate company. Additional information about the
Company is available on the Company's website at www.ddr.com.
SOURCE Developers Diversified Realty Corporation