Urban Edge Properties signed a contract to buy a more than 1.5 million-square-foot retail portfolio comprising seven properties, mainly in the New York City metropolitan area, for $325 million.
The properties are currently 83% leased and include the remaining fee and leasehold interests in Yonkers Gateway Center in Yonkers, N.Y., that were not acquired in a previous deal that closed Jan. 4.
Other properties are The Plaza at Woodbridge in Woodbridge, N.J.; The Plaza at Cherry Hill in Cherry Hill, N.J.; Manchester Plaza in Manchester, Mo.; Millburn Gateway Center in Millburn, N.J.; and 21 E Broad St/One Lincoln Plaza in Westfield, N.J.
Urban Edge is selling $127 million of its operating partnership units valued at $27.02 apiece to the contributors in exchange for their property interests.
Urban Edge will also fund the acquisition with $33 million of existing debt, an issuance of $117 million of non-recourse, secured debt and $48 million cash. The deal is expected to close during the second quarter.
The company's chairman and CEO, Jeff Olson, said in a news release that the company has closed on 10 acquisitions since the beginning of 2017 and expects them to generate an initial cash unleveraged yield of 5.7%.