Cedar Shopping Centers Acquires Colonial Commons Shopping Center in Pennsylvania for $49.1 Million

PORT WASHINGTON, N.Y., Jan. 18, 2011 /PRNewswire/ -- Cedar Shopping Centers, Inc. (NYSE: CDR) ("Cedar") today announced that it has closed on the acquisition of Colonial Commons in Lower Paxton Township, Pennsylvania. The 487,000 square foot shopping center, located approximately half-way between Harrisburg and Hershey, Pennsylvania, covers approximately 37 acres on Route 22, the principal retail corridor of the greater-Harrisburg-Hershey area.  The purchase price, at approximately $49.1 million, excluding closing costs and adjustments, and excluding additional potential "earn-out" payments for certain tenancies presently pending, represents a cost of approximately $101 per sq. ft.; the property was purchased from affiliates of Centro Properties Group.

Colonial Commons is currently 93% leased and is anchored by Giant Food Stores (68,000 sq. ft.). Additional tenants include: Dick's Sporting Goods (56,000 sq. ft.), L.A. Fitness (41,000 sq. ft.), Ross Dress For Less (30,000 sq. ft.), Marshalls (27,000 sq. ft.), JoAnn Fabrics (25,500 sq. ft.) and David's Furniture (25,000 sq. ft.).

At closing, Cedar entered into a first mortgage CMBS loan on the property, arranged by Citigroup Global Markets Realty Corp., in the amount of $28.1 million at 5.55% for a ten-year term with amortization on a 27-year schedule.  The balance of the purchase price was funded from the Company's secured revolving credit facility

Leo Ullman, Cedar's Chairman, CEO and President, stated, "We are pleased to complete this solid on-balance sheet acquisition. Our ability to add this signature property, with a preponderance of strong tenants and the opportunity to benefit from organic growth attributable to both renewals of below-market rents and lease- up of vacant space, will contribute to our cash-flow in the future.  Mr. Ullman continued, "While we have had significant success and fully expect to continue to source strong acquisitions for our joint venture with RioCan (which totaled nearly $350 million 2010), we are also selectively acquiring properties for our own balance sheet that complement our current portfolio. This dual approach provides to Cedar the ability to enhance returns while taking measured risk in our core competency of grocery-anchored centers."  

About Cedar Shopping Centers

Cedar Shopping Centers, Inc. is a fullyintegrated real estate investment trust which focuses primarily on the ownership, operation, development and redevelopment of "bread and butter"® supermarketanchored shopping centers in coastal midAtlantic and New England states.  The Company presently owns (both exclusively or in joint venture) and manages approximately 15.9 million square feet of GLA at 133 shopping center properties, of which more than 75% are anchored by supermarkets and/or drugstores with average remaining lease terms of approximately 11 years.  

For additional financial and descriptive information on the Company, its operations and its portfolio, please refer to the Company's website at www.cedarshoppingcenters.com.

SOURCE Cedar Shopping Centers, Inc.

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