Cedar Shopping Centers Opens Two New Supermarkets and Signs Another Supermarket Lease
05 November 2009 - 6:30AM
PR Newswire (US)
-The Three Stores Aggregate 258,000 Square Feet- -Each With 20-Year
Initial Lease Terms- PORT WASHINGTON, N.Y., Nov. 4
/PRNewswire-FirstCall/ -- Cedar Shopping Centers, Inc. (NYSE:CDR)
today announced openings this past week of Giant Food Stores
supermarkets at two ground-up development shopping centers and the
execution, also this past week, of a lease for a new Giant-Eagle
supermarket (the first of that Company's stores in Cedar's
portfolio). The new 97,900 square foot Giant Food Stores
supermarket at Cedar's Blue Mountain Commons development property
on Linglestown Road in northeast Harrisburg, Pennsylvania, opened
on October 28th. The store is part of a 125,000 square foot
ground-up shopping center development on approximately 22 acres of
a 34-acre parcel owned by the Company. Other tenants include a PNC
Bank branch completed on a pad site, Sonic, on a pad to be
delivered in the near future, Brothers Pizza, Supercuts and Subway.
The property also includes a Giant fuel facility on a separate
outparcel. The property is more than 90% leased. The Giant lease is
for a period of 20 years, with six renewal options of five years
each. The Giant store replaces a 62,320 square foot Giant store at
the Company's nearby Oakhurst Plaza property where the Company
arranged a lease termination payment and where it expects soon to
backfill the former Giant premises. The property is included in the
previously-reported RioCan (80%) and Cedar (20%) joint venture
arrangements for seven properties presently owned by Cedar. The
Company today opened a new 76,415 square foot Giant supermarket at
its Crossroads II joint venture shopping center development in
Stroudsburg, Pennsylvania, at the intersection of Routes 611, 33
and Interstate 80. Cedar's partner in the joint venture is Tristate
Ventures, L.P., an affiliate of Fameco Realty Corporation. The
Giant Food Stores supermarket is the anchor of a ground-up shopping
center development of approximately 133,775 square feet. Lease
negotiations with other in-line tenants are pending. A pad site for
construction of a Red Lobster restaurant of approximately 7,000
square feet has been delivered and the restaurant is expected to
open in or before the second quarter of 2010. The property also
includes a Giant fuel facility on an outparcel. The supermarket
lease is for a period of 20 years, with eight five-year renewal
options. The Company also executed a ground lease with Giant Eagle
stores for an 83,600 square foot supermarket at the Company's
Townfair Center property in Indiana, Pennsylvania. Townfair Center
is presently anchored by a 95,000 square foot Lowe's Home Center.
The Giant Eagle store will replace a former Shop -N- Save store of
approximately 50,000 square feet, the lease for which was acquired
by the Company with a termination payment by the tenant,
facilitating development of the new Giant Eagle supermarket. Cedar
expects to deliver the site to Giant Eagle in the first quarter of
2010. Upon completion of the new supermarket premises, the center
will measure approximately 211,440 square feet. The lease is for a
period of twenty years, with eight five-year renewal options. Nancy
Mozzachio, Cedar's Vice President of Leasing, stated, "The delivery
and opening of these three new supermarkets reflect the strength of
our development properties in terms of attracting dominant grocers
building important prototypes, while also attracting additional
credit tenancies to those properties. We continue to enjoy strong
demand for new supermarket openings and to experience substantially
increased leasing velocity for the ancillary retail premises. We
are also pleased to note that the weighted average rents for the
two Giant supermarket premises where we built the stores, as well
as the ground lease for the Giant Eagle supermarket, are above the
Company's average rents." About Cedar Shopping Centers Cedar
Shopping Centers, Inc. is a fully-integrated real estate investment
trust which focuses primarily on ownership, operation, development
and redevelopment of "bread and butter" supermarket-anchored
shopping centers in coastal mid-Atlantic and New England states.
The Company presently owns and operates approximately 13.1 million
square feet of GLA at 124 shopping center properties, of which more
than 75% are anchored by supermarkets and/or drugstores with
average remaining lease terms of approximately 11 years. The
Company's stabilized properties have an occupancy rate of
approximately 95%. The Company has also announced a pipeline of
seven additional substantially pre-leased primarily supermarket-
and drugstore-anchored development properties. For additional
financial and descriptive information on the Company, its
operations and its portfolio, please refer to the Company's website
at http://www.cedarshoppingcenters.com/. Forward-Looking Statements
Statements made or incorporated by reference in this press release
include certain "forward-looking statements". Forward-looking
statements include, without limitation, statements containing the
words "anticipates", "believes", "expects", "intends", "future",
and words of similar import which express the Company's beliefs,
expectations or intentions regarding future performance or future
events or trends. While forward-looking statements reflect good
faith beliefs, expectations, or intentions, they are not guarantees
of future performance and involve known and unknown risks,
uncertainties and other factors, which may cause actual results,
performance or achievements to differ materially from anticipated
future results, performance or achievements expressed or implied by
such forward-looking statements as a result of factors outside of
the Company's control. Certain factors that might cause such
differences include, but are not limited to, the following: real
estate investment considerations, such as the effect of economic
and other conditions in general and in the Company's market areas
in particular; the financial viability of the Company's tenants
(including an inability to pay rent, filing for bankruptcy
protection, closing stores and vacating the premises); the
continuing availability of acquisition, development and
redevelopment opportunities, on favorable terms; the availability
of equity and debt capital (including the availability of
construction financing) in the public and private markets; the
availability of suitable joint venture partners and potential
purchasers of the Company's properties if offered for sale; changes
in interest rates; the fact that returns from acquisition,
development and redevelopment activities may not be at expected
levels or at expected times; risks inherent in ongoing development
and redevelopment projects including, but not limited to, cost
overruns resulting from weather delays, changes in the nature and
scope of development and redevelopment efforts, changes in
governmental regulations relating thereto, and market factors
involved in the pricing of material and labor; the need to renew
leases or re-let space upon the expiration or termination of
current leases and incur applicable required replacement costs; and
the financial flexibility to repay or refinance debt obligations
when due and to fund tenant improvements and capital expenditures.
DATASOURCE: Cedar Shopping Centers, Inc. CONTACT: Cedar Shopping
Centers, Inc., Leo S. Ullman, Chairman, CEO and President,
+1-516-944-4525, Web Site: http://www.cedarshoppingcenters.com/
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