VIRGINIA BEACH, Va., June 29, 2016 (GLOBE NEWSWIRE) -- Wheeler Real Estate Investment Trust, Inc. (NASDAQ:WHLR), 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 Group
The 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.
