RAIT Financial Trust Acquires Retail Centers for $50.8 Million
RAIT Financial Trust (“RAIT”) (NYSE:RAS) today announced RAIT’s recent acquisition of two retail centers for a purchase price of $50.8 million, substantially below their replacement value. RAIT funded these purchases with $15.8 million of available cash and $35 million of property level debt. The acquisitions were sourced through Urban Retail Properties, LLC (“Urban Retail”), which became a wholly owned subsidiary of RAIT in March 2014. Urban Retail managed these properties for the previous owners and will continue to manage them.
Scott Schaeffer, RAIT’s Chairman and CEO, said, “We are very excited to expand our directly held property portfolio utilizing our subsidiary Urban Retail. Our investment in Urban Retail is an investment in the future growth and diversification of RAIT, as we leverage Urban Retail’s expertise, relationships and property management capabilities to target and acquire well positioned retail assets.”
The first property is a 236,070 square foot big box center and the second property is a 160,665 square foot community strip center. These properties are located adjacent to the I-75 highway in Troy, Michigan. The properties are surrounded by retail, office buildings and services in a highly concentrated and very stable residential area. The first property is 100% occupied with anchors such as Kohl’s, Bed Bath & Beyond, DSW, Home Good and ULTA. The second property is 96% occupied with anchors such as TJ Maxx, Pier 1 Imports, Planet Fitness and Panera Bread and recently added a 21,634 square foot Michaels.
About RAIT Financial Trust
RAIT Financial Trust is an internally-managed real estate investment trust that provides debt financing options to owners of commercial real estate and invests directly into commercial real estate properties located throughout the United States. In addition, RAIT is an asset and property manager of real estate-related assets. For more information, please visit www.rait.com or call Investor Relations at 215.243.9000.
About Urban Retail Properties, LLC
Urban Retail Properties, LLC, a subsidiary of RAIT Financial Trust, manages more than 60 retail properties in 24 states, totaling over 18 million square feet. Since its formation in 1984, Urban has been an innovator in retail ownership and management, becoming one of the nation’s leading third-party real estate management firms specializing in regional malls, community centers and big box portfolios. Urban creates value for institutional investment partners through strategic acquisition, development, merchandising and leasing efforts. For more information about Urban Retail, please visit www.urbanretail.com.
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