GREENWICH, Conn.--(BUSINESS WIRE)--Urstadt Biddle Properties Inc. (NYSE: UBA and UBP), a real estate investment trust, announced today that it completed the sale of a 10,100 square foot retail property located at 525 Main Street, Monroe, CT (“Monroe”). The property was sold to a local real estate investor for an all cash price of $3,650,000 million, exclusive of closing costs and adjustments, which equated to an approximate 6.9% capitalization rate on existing net operating income. Monroe is tenanted by a 1,700 square foot Starbucks and a 2,900 square foot M&T Bank, along with other local tenants. Monroe was purchased by the company in January 2007. The company expects to record a gain on sale of the property in its fiscal third quarter of approximately $575,000, exclusive of closing costs. The company expects to invest the net proceeds from the sale into retail properties located in its primary investment marketplace in the near future.
Commenting on the sale, Willing L. Biddle, UBP’s President and Chief Executive Officer said, “We are pleased to have sold this fully-leased asset at an attractive yield on existing income. The company is continually evaluating all of its investment properties to determine if they continue to meet our current investment strategy of owning high quality grocery or pharmacy anchored shopping centers in the suburban communities that surround New York City. Although Monroe was a solid commercial real estate property, it did not meet our current investment objectives. Accordingly, we elected to sell it and plan on recycling the proceeds into properties which are more closely aligned with our current investment objectives.”
Urstadt Biddle Properties Inc. is a self-administered equity real estate investment trust which owns or has equity interests in 83 properties containing approximately 5.3 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 197 consecutive quarters of uninterrupted dividends to its shareholders since its inception and has raised total dividends to its shareholders for the last 25 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.