Wheeler REIT Adds 4 Retail Assets to Portfolio

by Evelina Croitoru

Tri-County Plaza in Royston, Ga.

Atlanta—Wheeler REIT, a fully-integrated, self-managed commercial real estate investment company focused on acquiring and managing income-producing retail properties, has announced the acquisition of four properties for the total purchase price of $22 million.

The firm bought Riverbridge Shopping Center, a 91,200-square-foot Ingles Markets grocery store-anchored center located in Carrollton, Ga. Ingles will be adding a fuel center at the site, thus extending its lease term until 2026. At the time of the deal, the property was 98.5 percent occupied.

Wheeler also purchased the Tri-County Plaza located at 1065 Franklin Springs St. in Royston, Ga. The property built in 1986 is a 67,5770-square-foot BiLo-anchored community center with 91 percent occupancy. Its tenant roster includes Maxway, Shoe Show and Snap Fitness.

The company acquired Sangaree Plaza located in Summerville, S.C., as part of a portfolio deal that also included Tri-County Plaza. The 66,948-square-foot center is also anchored by BiLo, and was 100 percent leased at the time of sale.

Wheeler’s last acquisition on the list is Berkley Shopping Center, a 47,945-square-foot, Farm Fresh grocery store-anchored property located in the historic South Norfolk, Va., neighborhood of Berkley. The shopping center built in 2005 was fully leased at the time of the deal.

To close the transactions, the company used a combination of cash and a ten-year, interest-only debt loan. The weighted average cap rate on the four assets was 8.3 percent, and the weighted average loan-to-value and interest rate on the debt employed was 64 and 4.7 percent, respectively.

“We remain committed to covering our dividend of $0.21 on an annualized basis and our recent guidance states that we will cover on a pro forma basis in the fourth quarter of 2016. We believe the acquisition of these four assets further demonstrates our commitment of creating value for our shareholders,” Jon Wheeler, chairman & CEO of Wheeler, said in a prepared statement.

Image courtesy of Wheeler Real Estate Co.