Mt. Airy Shopping Center Sold at 9.16% Cap Rate


Sold-Sign8Wheeler Real Estate Investment Trust, Inc. has closed on the acquisition of New Market Crossing, a grocery-anchored shopping center previously announced as an acquisition target.

New Market Crossing is located in Mt. Airy, NC and is a 116,976 square foot center. It is anchored by a 54,838 square foot Lowes Food Store and a 32,000 square foot Roses. Lowes Foods has 9 years remaining on their term. The Center is 93% leased and occupied.

Total acquisition price of the Property was $9.0 million, or $76.93 per leasable square foot, which the Company financed using a combination of cash and the Company’s Key Bank credit facility with an interest rate of 30 day LIBOR plus 250 basis points. The cap rate on New Market Crossing was 9.16%, and the loan-to-value was 65%.

Jon S. Wheeler, Chairman and Chief Executive Officer of Wheeler, stated, “I am pleased to announce that New Market Crossing will be our twenty second acquisition for 2016. I am very familiar with this asset, as well as the Mt. Airy market, and feel this center will enhance our portfolio nicely. We add a new grocer to the portfolio, Lowes Foods, thereby lessening our exposure to any one specific tenant and further diversifying our tenant base. We still believe that we are on the cusp of reaching our goal of covering our $0.21 dividend and feel that the addition of this acquisition pushes us closer to obtaining that goal by year end.”

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