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December 31, 2012

Retail Opportunity Investments Acquires $114M Grocery Anchored Portfolio

By Keith Loria, Contributing Editor

Retail Opportunity Investments Corp. has closed on three shopping centers and has a binding contract to acquire a fourth in a $114 million acquisition encompassing approximately 444,000 square feet of gross leasable space in Southern Calif.

The off-market transaction, funded with borrowings under ROIC’s unsecured credit facility, also gives the company the rights of first refusal to acquire three additional shopping centers.

“We are excited to be acquiring this exceptional portfolio of Southern California shopping centers. The properties were not marketed. We accessed the transaction through a long-standing relationship,” said Stuart A. Tanz, Retail Opportunity Investments Corp.’s president and CEO. “The shopping centers are well located at major intersections within densely populated communities, which we know extremely well, and are an excellent strategic fit with our current Southern California portfolio.”

The portfolio was previously owned and operated by a Southern California family.

Cypress West, which was purchased for $27.6 million, is approximately 106,000 square feet and is anchored by Ralph’s Supermarket (Kroger) and Rite Aid. The property is located in Cypress, Calif., and is currently 94.1 percent leased.

Redondo Beach Plaza, purchased for $30.8 million, is approximately 111,000 square feet and is anchored by Von’s Supermarket (Safeway). The property is located in Redondo Beach, Calif., and is currently 98.8 percent leased.

Harbor Place Center was purchased for $27.7 million. The shopping center is approximately 120,000 square feet and is anchored by Albertson’s Supermarket and Ross Dress for Less. The property is located in Garden Grove, Calif., and is currently 100 percent leased.

Diamond Bar Town Center, which ROIC has a binding contract to acquire for

$27.8 million is approximately 107,000 square feet and is anchored by Wal-Mart. The property is located in Diamond Bar, Calif., and is currently 91.2 percent leased.

“The four shopping centers represent a balance of stable cash flow, derived from well-established anchor retailers, and numerous value-added growth opportunities.” Tanz said. “With three of the four properties closed, we have completed a total of $278 million of shopping center investments in 2012, surpassing our target for the year.”

As part of the portfolio transaction, ROIC also has contractual rights of first refusal to acquire three additional grocery-anchored shopping centers located in the Los Angeles and Orange County metropolitan areas, including: Hawthorne Plaza, a 97,000-square-foot shopping center located in Hawthorne, Calif., anchored by Albertson’s Supermarket; Plaza Del Sol, a 165,000-square-foot shopping center located in Burbank, Calif., anchored by Vallarta Supermarket; and Peninsula Marketplace, a 95,000-square-foot shopping center located in Huntington Beach, Calif., anchored by Ralph’s Supermarket (Kroger).

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