VIRGINIA BEACH, Va., Dec. 08, 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, 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.
