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).