GREENWICH, Conn.--(BUSINESS WIRE)--Urstadt Biddle Properties Inc. (NYSE: UBA and UBP) announced today that a wholly-owned subsidiary had completed the purchase of a 51% equity interest in a joint venture that owns the McLean Plaza Shopping Center in Yonkers, Westchester County, New York for an investment of $7.8 million. The purchase price was subject to the company assuming its share of a $2.78 million first mortgage payable that encumbers the shopping center. The loan bears interest at the rate of 4.0% per annum and matures in December 2014. The company purchased its 51% interest from an affiliate of The Great Atlantic & Pacific Tea Company (A&P), which is an existing tenant in the shopping center. In conjunction with the purchase, A&P modified its lease and extended the initial term until 2034. The remaining 49% of the joint venture continues to be owned by entities owned by the two real estate families that originally developed the shopping center with A&P. The Company funded the acquisition with available cash and a borrowing on its unsecured revolving credit facility. The shopping center is located on McLean Avenue, in Yonkers, New York at the intersection with the Major Deegan Expressway (Interstate 87). The shopping center was built in 1982 and contains 57,000 square feet of leasable space anchored by a 35,000 square foot A&P Supermarket. Other tenants in the shopping center include Duane Reade pharmacy (a subsidiary of Walgreen’s), an E-Z Pass Service Center, Dunkin Donuts and Ridgewood Savings Bank. Over 500,000 people live within three miles of the shopping center.
Willing Biddle, CEO of Urstadt Biddle Properties Inc. stated, “We very are pleased to have purchased an interest in this solid neighborhood shopping center. It has everything we look for in a shopping center: a supermarket, a pharmacy, an excellent location and very high population density in the surrounding community. It will be a solid performer for UBP for many years to come.” James Aries, Director of Acquisitions stated, “We are pleased to have completed this sale-leaseback with A&P. Our long-standing relationships with A&P and the original developers helped us complete the transaction. In addition to the acquisition, we have agreed to fund a complete renovation of the supermarket which will make the property even stronger”.
Urstadt Biddle Properties Inc. is a self-administered equity real estate investment trust which owns or has equity interests in 69 properties containing approximately 4.8 million square feet of space. Listed on the New York Stock Exchange since 1970, it provides investors with a means of participating in ownership of income-producing properties. It has paid 179 consecutive quarters of uninterrupted dividends to its shareholders since its inception and has raised total dividends to its shareholders for the last 20 consecutive years.
Certain statements contained herein may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among other things, risks associated with the timing of and costs associated with property improvements, financing commitments and general competitive factors.
