Regency JV Buys Fellsway Plaza - Analyst Blog

By
A A A

As part of the efforts to enhance its presence in the Boston market, Regency Centers Corp. ( REG ) acquired Fellsway Plaza in Medford, Mass. in a joint venture (JV) with Charter Realty & Development Corp. The property was purchased from Berenson Associates of Boston and financed by the PNC Bank of The PNC Financial Services Group, Inc. ( PNC ).

Spanning 150,000-square-foot, this neighborhood center is anchored by Stop & Shop, which has repeatedly delivered decent performances, compared to the other grocers in that locality.

Regency aims at reviving the tenant mix and plans to undertake a redevelopment program for this property. It is scheduled to commence in the spring of 2014. Notably, on behalf of the JV, the development, property management and leasing activities will be performed by Charter.

Based in the gateway retail location for consumers moving south on the Fellsway en route for Boston, this above mentioned property buyout is a strategic fit for Regency. Going forward, we believe such strategic acquisitions and the inclusion of premium development and redevelopment projects will boost Regency's portfolio in infill locations with high occupancy levels and strong tenant sales and offer adequate opportunities for top-line growth going forward.

As a matter of fact, Regency's portfolio of shopping centers, located in high-income, high-barrier markets, is among the best in the sector. Moreover, with a focus on best-in-class retailers such as Whole Foods Market, Inc. ( WFM ) and The Kroger Co. ( KR ), the portfolio drives value and mitigates operating risks.

This retail real estate investment trust now carries a Zacks Rank #2 (Buy).



KROGER CO (KR): Free Stock Analysis Report

PNC FINL SVC CP (PNC): Free Stock Analysis Report

REGENCY CTRS CP (REG): Free Stock Analysis Report

WHOLE FOODS MKT (WFM): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research




The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: KR , PNC , REG , WFM

Zacks.com

Zacks.com

More from Zacks.com:

Related Videos

Stocks

Referenced

Most Active by Volume

33,110,376
  • $113.99 ▲ 1.77%
25,034,179
    $17.98 unch
24,486,872
  • $7.41 ▲ 2.07%
20,864,535
  • $7.39 ▼ 2.76%
18,600,501
  • $8.30 ▼ 0.36%
17,530,211
  • $8.14 ▲ 3.17%
17,299,208
  • $93.79 ▲ 2.74%
14,669,760
  • $25.78 ▼ 0.19%
As of 12/26/2014, 04:15 PM


Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com