) disclosed the prospective opening of the Nordstrom Rack store of
Nordstrom Inc. (
) at The Shops at Midtown Miami in Florida. The outlet is projected
to open in spring 2015.
The move came as a part of DDR's Project Accelerate initiative
that started in May this year. As per this multi-year proactive
lease termination initiative, the company is gaining control of its
premium store locations with below-market leases, from
underperforming anchor tenants. It then aims to re-let these spaces
to well performing tenants and enjoy mark-to-market rent
appreciation of 30-40%.
As a matter of fact, The Shops at Midtown Miami is an urban
power center and spans 645,000 square foot. The property is closely
connected to the downtown, Miami Beach, the Port of Miami, and
Miami International Airport. This 98% leased center boasts tenants
lineup of renowned retailers such as Target Corp. (
), West Elm and The Home Depot, Inc. (
The addition of such best-in-class retailer to one of DDR's top
performing asset in Florida is encouraging. This will further
enhance the value of The Shops at Midtown Miami, which has been
producing a compound annual NOI growth rate of 32%, since 2010.
Also, the deal strengthens DDR's ties with Nordstrom, which is in
the top 40 tenant list of the company. Most importantly, the
efficient retail space management by DDR through relocation and
consolidation is poised to enhance the net operating income of this
retail real estate investment trust (REIT).
DDR has scheduled the release of its third-quarter 2014 results
on Oct 27. The Zacks Consensus Estimate for the same is currently
pegged at 29 cents, representing year-over-year growth of
DDR currently holds a Zacks Rank #3 (Hold).
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