Private real estate investment trust Devonshire REIT has acquired Pavilion Shopping Center in Beachwood, Ohio, a suburb of Cleveland, for USD35 million.
Pavilion Shopping Center is a 249,873 square foot Giant Eagle anchored power centre with Big Lots, Marshalls, Michael's and Stein Mart as sub-anchors.
The property is 97 per cent occupied with the one remaining vacant space currently under negotiation.
Mike Denman, president of real estate operations for Devonshire REIT, says: "The Pavilion is a perfect example of Devonshire's acquisition philosophy – grocery-anchored, value-oriented, national tenants, high cash flow with upside and in an attractive sub-market. We also see it as a great opportunity to establish relationships with national tenants, like Stein Mart and Petco, who don't currently have stores in any of our other properties."
Chris Campbell, CEO of Devonshire REIT, adds: “While the merits of grocery-anchored centres, and attractive sub-market returns, just now seem to be making the industry news, the acquisition and management of these types of properties are built in to Devonshire's DNA. It's what we've done from the beginning, so we feel we are significantly ahead of the curve which gives us a competitive edge on getting deals like this one, which adds over USD1 million to our cash flow after debt service, done.”