In part "In late January, Cedar and Prime closed on the $40.7 million purchase of a 260,000-square-foot center in New London, CT from Centro Properties Group. Despite being 99% occupied, the joint venture acquired the center at value-add pricing -- the sale price is $1.3 million less than J.P. Morgan and New Plan (acquired by Centro in 2007) paid for it in March 2005.
This is a trend echoed in Centro's other recent deals, as buyers continue to view the seller as being in a "distressed" situation. Since the beginning of 2009, Centro has sold 14 of its U.S. shopping centers and unfortunately, most have sold at prices significantly below what Centro (or the companies it acquired) paid for them. Buyers (primarily firms and institutions seeking value-add opportunities) of these properties include Paramount Realty Services, Katz Properties, DLC Management, Gator Investments, Cedar, Acadia Realty Trust, and HT Group. "
CER Price at posting:
5.1¢ Sentiment: Buy Disclosure: Held
