GREENWICH, Conn.--(BUSINESS WIRE)--Urstadt Biddle Properties Inc. (NYSE:UBA)(NYSE:UBP) announced today that it has acquired an equity interest in a new entity that owns the Washington Commons Shopping Center located in Dumont, NJ. Washington Commons is a 75,400 square foot shopping center, which also includes a residential component. The mixed-use property consists of two buildings. One is a free-standing 44,300 square foot Stop & Shop. The second building is a three-story retail and multifamily building occupied by Valley Medical Group, Great Clips, Pet Valu, Blimpie and 26 residential apartments. The residential unit mix consists of one bedroom, two bedroom and studio apartments. The residences have their own entrance and parking field located behind the shopping center. The property is currently 100% leased. All retail tenants, except for Great Clips, have been in occupancy since 1997.
Dumont, New Jersey is located in the southern part of Bergen County. Washington Avenue is a major north/south commercial artery which feeds into competitive commercial markets to the north (Closter) and to the south (Bergenfield). Stop & Shop is the only grocer serving densely populated Dumont. Although Washington Avenue is a two-lane road, it is the only commercial artery in town and there is a free-standing Walgreens, a free-standing Burger King and a free-standing Chase Bank at the other three corners of this intersection, which creates a retail critical mass. Dumont is located only 10 miles from Manhattan and is an important commuter town to New York City. Dumont commuters are served by NJ Transit bus service with 35 minute travel time to Port Authority.
The transaction was structured as a “DownREIT partnership” whereby the seller received a combination of cash and operating partnership units in a new entity formed to purchase the property. Urstadt Biddle Properties is the managing member of the newly formed entity and will manage and lease the property. The seller is a regional real estate developer that originally developed the property. UBP’s initial equity in the DownREIT was approximately $3.9 million, which represented an approximate 31.4% equity interest.
Willing Biddle, President of Urstadt Biddle Properties Inc. said, “We are pleased to have acquired another high quality grocery anchored commercial property located in our core marketplace. The property is 100% leased and Stop & Shop does very well in this space. In fact, they just recently exercised the next option under their lease. The property has an average daily traffic count of over 20,000 cars. Approximately 148,000 people, earning an average household income of $133,000, live within 3 miles of the subject property.” James Aries, Senior Vice President of Acquisitions, added, “We are thrilled to have acquired Washington Commons, which has been on our radar since 2002. This complements nicely with other UBP-owned shopping centers in nearby Emerson, Fort Lee and Passaic. We continue to pursue grocery-anchored shopping centers in suburban New York City with high barriers to entry.”
Urstadt Biddle Properties Inc. is a self-administered equity real estate investment trust which owns or has equity interests in 81 properties containing approximately 5.1 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 190 consecutive quarters of uninterrupted dividends to its shareholders since its inception and has raised total dividends to its shareholders for the last 23 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.