Ramco-Gershenson Buys 461 KSF Shopping Center in Cincinnati Suburb
- Dec 23, 2013
Ramco-Gershenson Properties has just surpassed the half-billion-dollar mark in its annual acquisitions with the purchase of Deerfield Towne Center, a 461,000-square-foot shopping center in the suburban Cincinnati suburb of Mason, Ohio. The REIT shelled out $97 million for the high-quality retail asset, bringing the price tag on its 2013 buying binge up to $567 million.
Ramco-Gershenson got quite a bit of bang for its buck with Deerfield. Located in an affluent neighborhood 20 miles outside of downtown Cincinnati, the nine-year-old retail destination is home to several anchors–including one of only two Whole Foods markets in metropolitan Cincinnati–it’s 92 percent leased and it provides opportunity in the form of a vacant 21,000-square-foot anchor box, as well as the capacity for outparcel development.
Simply put, Deerfield fits the bill. “This ability to secure acquisition opportunities with value-add potential is a key component in our approach to the expansion and refinement of our asset base,” Dennis Gershenson, president & CEO of Ramco-Gershenson, said during the company’s earnings call in October.
Ramco-Gershenson acquired Deerfield with $52 million in cash on hand, $25 million of new unsecured debt and $20 million in borrowings under its $240 million revolving line of credit.
Altogether, Ramco-Gershenson’s half-billion-plus in purchases this year has increased the company’s portfolio by 17 properties totaling 3.6 million square feet. The REIT’s biggest buy of the year–in size and price–came in March with the acquisition of the remaining 70 percent partnership interest in a 2.2 million-square-foot portfolio of 12 shopping centers in Florida and Michigan for $256.8 million in cash and the assumption of the partner’s share of debt.