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Regency to Enhance Center, Adds WFM - Analyst Blog
Recently , the retail real estate investment trust (REIT), Regency Centers Corporation ( REG ), disclosed its plan to redevelop an Ore.-based premium shopping center - Greenway Town Center - with an estimated investment of $6 million. The redevelopment is slated to begin in August.
According to the redevelopment plan, Greenway Town Center will incorporate various changes - including the addition of a new exterior frontage with cedar wood accents, upgradation of architectural components and enhancement of the parking space - to boost its image. All retailers will remain open during the redevelopment process.
In a further attempt to enhance the shopping center's value, Regency inked a deal with the world's leading supplier of natural food - Whole Foods Market ( WFM ) - for 37,500 square feet of space. Notably, the proposed outlet at Greenway Town Center is expected to open in 2014.
Tigard-based, Greenway Town Center is situated in the northwest corner of SW Scholls Ferry Road and SW 121 st Avenue. The shopping center, with a daily traffic of 37,000 and spanning 93,101 square feet, was bought by Regency in 2005. Greenway Town Center currently boasts several prominent tenants such as Dollar Tree, Inc. ( DLTR ), McMenamins Pub, Cold Stone Creameryand Rite Aid Corporation ( RAD ). Apart from this, Regency owns 10 other centers of an aggregate 834,000 square feet in the Oregon market.
We view the proposed moves as a strategic venture by the company and expect it to drive occupancy and tenant sales per square foot. We expect these activities to provide Regency a considerable up-market potential and boost its top-line growth going forward.
Regency currently carries a Zacks Rank #3 (Hold).
RITE AID CORP (RAD): Free Stock Analysis Report
REGENCY CTRS CP (REG): Free Stock Analysis Report
WHOLE FOODS MKT (WFM): Free Stock Analysis Report
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