NORTH MIAMI BEACH, Fla.--(BUSINESS WIRE)-- Equity One, Inc. (NYSE:EQY), an owner, developer, and operator of shopping centers, announced today that it has acquired, or is under contract to acquire, four properties for a total investment of $260 million. Three of the assets are located in the New York Metropolitan Region and one is located in Bethesda, Maryland.
The company entered into a contract to acquire Westwood Complex, a 22-acre property located in Bethesda, Maryland with significant retail opportunities for redevelopment and expansion. The site consists of 214,767 square feet of retail space, a 211,020 square foot apartment building, and a 62-unit assisted living facility. The property is situated in a dense, highly affluent market with 142,000 people living within 3-miles with an average household income of $163,000. The transaction is initially structured as a $95 million mortgage loan which has been funded. The transaction will be completed with an outright purchase of the property for $140 million with an anticipated closing prior to January 2014.
The main retail center, within the Westwood Complex, has been anchored by a high volume Giant Food since the center opened in 1959. The Giant lease expires in 2019 with no term remaining. The apartment building is leased to a division of Montgomery County, MD and is subject to a purchase right in 2017 which is expected to be exercised. The assisted living facility is leased to Manor Care Health Services through 2015 with no term remaining.
The company acquired Clocktower Plaza, a 78,820 square foot shopping center located in Queens, NY, for $56 million. It is anchored by a high volume Pathmark grocery store and is 100% leased. The property is situated on seven acres of land with excess parking which is expected to provide development and expansion opportunities in the future.
The company also closed on the purchase of two previously announced acquisitions, Darinor Plaza and 1225 Second Avenue.
Darinor Plaza is a 152,025 square foot shopping center located on The Post Road in Norwalk, Connecticut. It is anchored by Kohl's, Old Navy and Party City. It is the company's seventh shopping center in the state of Connecticut and the third shopping center located on The Post Road between Westport and Darien. Darinor was built in 1978 and is 100% leased. The property was purchased for $36 million and is encumbered by an $18.8 million mortgage.
1225 Second Avenue is an 18,474 square foot retail condominium covering a full city block on Second Avenue between 64th and 65th Street in New York City. It is anchored by CVS and 7-11. The property was purchased for $27.5 million and is encumbered by a $16.7 million mortgage. Together with Clocktower, this property marks the company's sixth acquisition in New York City.
"These acquisitions are consistent with our strategy of owning retail properties in urban markets with visible growth through contractual rent increases, below market rents and redevelopment opportunities," said Jeff Olson, CEO of Equity One.
ABOUT EQUITY ONE, INC.
As of June 30, 2012, Equity One’s consolidated property portfolio comprised 165 properties consisting of approximately 16.8 million square feet of gross leasable area, including 142 shopping centers, 11 development or redevelopment properties, five non-retail properties and seven land parcels. As of June 30, 2012, our core portfolio was 91.8% leased and included national, regional and local tenants. Additionally, the company had joint venture interests in 17 shopping centers and two office buildings totaling approximately 2.8 million square feet of gross leasable area.
Certain matters discussed by Equity One in this press release constitute forward-looking statements within the meaning of the federal securities laws. Forward-looking statements in this press release include, among others, statements about the quality of assets acquired and their potential for redevelopment. Although Equity One believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that these expectations will be achieved. Factors that could cause actual results to differ materially from current expectations include volatility of the capital markets; changes in macro-economic conditions and the demand for retail space in the states in which Equity One owns properties; the continuing financial success of Equity One’s current and prospective tenants; the risks that Equity One may not be able to proceed with or obtain necessary approvals for development or redevelopment projects or that it may take more time to complete such projects or incur costs greater than anticipated; the availability of properties for acquisition; the extent to which continuing supply constraints occur in geographic markets where Equity One owns properties; the success of its efforts to lease up vacant space; the effects of natural and other disasters; the ability of Equity One to successfully integrate the operations and systems of acquired companies and properties; changes in Equity One’s credit ratings; and other risks, which are described in Equity One’s filings with the Securities and Exchange Commission.
Equity One, Inc.
Mark Langer, 305-947-1664
EVP and Chief Financial Officer
Source: Equity One, Inc.