National shopping center owner and operator DLC Management Corporation (DLC) has formed a joint venture with New York-based DRA Advisors in a $390 million deal to buy a portfolio of 16 shopping centers.
The sale represents one of the largest retail portfolio sales in the northeast thus far in 2016.
The portfolio will grow DLC’s owned square footage to approximately 21.7 million square feet – an increase of 26 percent — and increase its valuo to more than $2.7 billion.
“The acquisition of this portfolio represents an unparalleled growth opportunity for our firm,” said Adam Ifshin, president and CEO, DLC.
“It will allow us to deepen our existing relationships and build new ones with national, regional and local retailers.”
Brett Gottlieb, director of acquisitions, DRA, said his firm was “excitedˮ about the venture and “We look forward to growing our relationship with DLC in the future.”
Holliday Fenoglio Fowler represented seller DDR Corp. in the sale of the assets location throughout the Albany, Buffalo, Ithaca, Olean, Rochester and Utica markets in New York and Alabama.
The portfolio is 89.2 percent leased overall and encompasses properties anchored by high-quality tenants, including Home Depot, Walmart, Target, Lowe’ and Price Chopper. The portfolio includes Big Flats in Elmira; Tops Plaza in Ithaca; and Freedom Plaza in the Utica.
The HFF investment sales team representing the seller was led by senior managing director Jose Cruz, managing director Kevin O’Hearn, directors Michael Oliver and Stephen Simonelli and supported by senior managing director James Koury.
“This portfolio represents a mix of high-quality, core assets and core-plus/value-add retail centers in the upstate New York Market,” stated Cruz.
“The outstanding tenant base coupled with the leasing upside was very attractive to the buyer pool. At $390 million, this transaction represents one of the largest retail portfolio sales in the northeast thus far in 2016.”
DLC has plans to re-develop several of the newly centers and will open a new satellite office in Buffalo, New York to help facilitate management.