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Acadia Realty details Q1 deals

Acadia Realty Trust,in reporting its first-quarter results, detailed its recent key acquisitions anddispositions.

During and subsequent to the first quarter, the company acquired,or entered into contracts to acquire, $271.6 million of core portfolio properties.The company expects acquisitions for the year to reach as much as $400 million.

The company said it entered into a 49-year master lease in Marchfor the 6,920-square-foot, two-level retail space at the base of the Carlyle Houseon Madison Avenue, between 76th and 77th streets, on the Upper East Side of Manhattan,N.Y.

The property's current retail tenants include Vera Wang, PerrinParis and Yves Delorme. However, the company said it will have the opportunity toimmediately recapture any of the five retail leases when its master lease commencesMay 1. This lease position has been capitalized for the company's financial statementsat a total value of $76.5 million.

In January, it acquireda 49% interest in Gotham Plaza from Blumenfeld Development Group Ltd. for $38.8million in an off-market deal.

Acadia also noted that it has $156.3 million of street-retailacquisitions under contract, including a contract to acquire a portfolio of fivestreet-retail properties in one of its current major urban markets for $150.0 million.

In connection with the acquisition, the company expects to assume$59.7 million of in-place mortgage debt with various lenders. The company expectsto complete the acquisition in phases before Dec. 31.

Also during the first quarter, the company completed $27.8 millionof opportunistic and value-add acquisitions on behalf of Fund IV.

In February, Fund IV made a $14.0 million preferred equity investmentin a portfolio of 10 buildings located on the 900 block of W Randolph Street inChicago's Fulton Market district. The portfolio was acquired by Tucker Development,which plans to rehabilitate the properties to create an approximately 90,000-square-footcommercial destination with shopping, dining and office uses.

Also among the completed deals is a 15,700-square-foot retailcondominium in Boston for $11.5 million.

During the quarter, Fund IV, in partnership with Prado Group,completed the acquisition of 1964-1966 Union St. in San Francisco for $2.3 million.

During and subsequent to the first quarter, Acadia also completed$153.8 million of dispositions within Fund III, including the sale of in Chicago for $46.5 million, compared to an all-in cost basis of $33.0 million.

In January, Fund III also completed the recapitalization of CortlandtTown Center, a 641,000-square-foot power center in Westchester County, N.Y., withan institutional partner at a $165.0 million valuation, compared to an all-in costbasis of $94.7 million. Fund III sold a 65% interest in the property for $107.3million, generating a 44.6% internal rate of return and 3.61x multiple on a 65%share of its total equity investment in the property.

During its seven-year hold period, Fund III successfully increasedthe property's occupancy to 97%. According to the company, Fund III is also developinga 150,000- to 170,000-square-foot shopping center directly across the street.

Through quarter end, Fund III has returned 127% of invested capital,net of promote. Year-to-date, the company has generated approximately $6.8 millionof net promote income from Fund III, it noted.