Rye-Based Acadia Completes $403M in Deals

Real Estate In-Depth | September 2019

Acadia Realty Trust is headquartered at 411 Theodore Fremd Drive in Rye.

RYE—Acadia Realty Trust, which is based in Rye, announced on Sept. 6 that subsequent to the second quarter of 2019, the company completed approximately $166 million of transactions. Year to date, Acadia Realty has completed approximately $403 million of transactions—$329 million of fund acquisitions and $74 million of core transactions—with another $47 million under contract.

“We continue to find attractive deals to execute on our dual platform mandate,” stated Kenneth F. Bernstein, president & CEO of Acadia Realty Trust. “With respect to our fund platform, we have identified and completed several attractive acquisitions that should provide strong risk adjusted returns. At the same time, we have added key assets with strong growth profiles to our existing core markets.”

In terms of the company’s core platform, in July 2019 the company acquired 47 Greene St. in New York City for $24.8 million in an off-market transaction. 47 Greene St. is a 7,200-square-foot street retail property located between Broome and Grand in the Soho neighborhood of Manhattan. The property is 100% leased to Theory.

As previously announced, the company has acquired, or entered into contracts to acquire $121.6 million of New York City street retail assets in Soho, consisting of the portfolio of $96.8 million during the first quarter and an additional agreement of $24.8 million during the second quarter.

To date, of the $121.6 million, $74.4 million have closed and $47.2 million currently remains under contract. The company expects to complete the remaining properties under contract in phases through 2020.

The. company also announced several fund acquisitions. In August, Fund V closed on the purchase of Landstown Commons, a 400,000 square-foot shopping center located in Virginia Beach, VA for $87.0 million. The property is anchored by strong retailers including Ross, Best Buy, Ulta, Five Below, Old Navy and Dollar Tree. It benefits from several submarket drivers within five miles of the asset including Naval Station Oceana and several education and medical facilities. As the dominant center in the region, this higher-yielding asset has a diverse mix of necessity, entertainment, food and soft goods retailers that complement the market

In August, Fund V, in partnership with Elmsford-based DLC Management Corp., closed on a two-asset portfolio totaling $53.7 million. The transaction represents the second deal Acadia has done with DLC in as many quarters, with Fund V serving as a 90% partner in the joint venture. Both assets are in Fredrick, MD, a growing market ideally positioned to act as a suburb to both Washington, DC and Baltimore.

Frederick Crossing, a 300,000 square-foot center anchored by Kohl’s, Best Buy, Ross, and Dollar Tree, was purchased for $32.4 million. The asset is the dominant center in the market with above-average sales and strong stability exhibited through several recent tenant renewals and extensions.

Frederick County Square, a 225,000 square-foot Kmart anchored center was purchased by the company for $21.3 million. This center was purchased well below replacement cost at an attractive yield affording the optionality to accretively redevelop the center to take advantage of an increasing crop of tenants interested in expanding into this growing market.