In what will mark one of the largest retail portfolio deals year-to-date, shopping center REIT DDR and private equity firm Blackstone formed a joint venture to buy 76 shopping centers from American Realty Capital Properties, reports Bloomberg. The transaction is valued at approximately $2 billion, including assumed debt.
The portfolio is made up primarily of power centers located in strong urban hubs, including Los Angeles, Chicago, Washington, D.C., Denver, Houston, Atlanta and Phoenix. It is currently 95.1 percent leased, with strong potential for rent growth, according to DDR estimates.
ARCP is selling the portfolio, which totals about 16.4 million sq. ft. of space, to finance its acquisition of Red Lobster's real estate assets. DDR and Blackstone plan to sell 29 of the centers once the transaction goes through.
