Regency Centers Corporation
(
REG
), a real estate investment trust (REIT), has recently
acquired a 189,321 square-foot shopping center named Balboa Mesa
Shopping Center in San Diego, California. The property was acquired
from Balboa Realty LLC, a private real estate company, for $59.5
million.
The 1969-built infill shopping center is anchored by
Kohl's Corp.
(
KSS
) - one of the largest department store chains in the U.S.; Vons -
a southern California supermarket chain and a division of
Safeway Inc.
(
SWY
); and
CVS Caremark Corporation
(
CVS
) - the second largest pharmacy chain in the U.S.
Regency will largely benefit from the prime location of the
property as it is situated in a major retail node with an estimated
63,000 vehicles passing the site daily. In addition, the shopping
center has a residential population of 126,000 in its periphery and
a daytime population of 109,000 within a three-mile radius.
The property is currently 95% leased and offers little scope for
further improvement of its net operating income, unless Regency
undergoes an immediate redevelopment project to increase the square
footage of the center. With the acquisition, Regency presently owns
69 properties in California, including 10 retail centers spanning
1.5 million square feet in the San Diego market.
Jacksonville, Florida-based Regency owns, operates and develops
grocery-anchored retail shopping centers in the U.S. The average
household income in the markets in which Regency has a significant
presence is over $100,000.
With properties in high income, high-barrier markets, Regency's
retail strip center portfolio is among the best in the sector,
which allows it to continually perform at the top-end of its peer
group.
Regency maintains a conservative capital structure and follows a
self-funding capital strategy to fund its growth, which includes
disposal of non-strategic assets and a continued focus on
industry-leading co-investment partnership programs.
We maintain our Neutral rating on Regency, which currently has a
Zacks #3 Rank that translates into a short-term Hold
recommendation.
CVS CAREMARK CP (CVS): Free Stock Analysis
Report
KOHLS CORP (KSS): Free Stock Analysis Report
REGENCY CTRS CP (REG): Free Stock Analysis
Report
SAFEWAY INC (SWY): Free Stock Analysis Report
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