"We're very pleased with the continued increase in our occupancy, especially the very strong rise in our small shop leasing. This activity drives improvements in our Same Property NOI which, combined with reduced fallout and rental rate increases, makes us confident that we will meet our goal of 4% to 5% for the year," said Johnny Hendrix, Executive Vice President and Chief Operating Officer.
Industrial Divestiture and Capital Recycling
The Company finalized the sale of its wholly-owned industrial portfolio to DRA Advisors LLC for $382 million on May 24
. This portfolio included 52 properties aggregating 9.6 million square feet. The Company continues to pursue the divestiture of its interests in its industrial joint ventures that own an additional 21 properties which it believes will be complete before year-end.
During the quarter, the Company also sold thirteen assets for $46 million. The majority of these properties were in the Company’s secondary portfolio. The average population was less than 75,000 people and the average household income was less than $80,000 in a three-mile trade area. As communicated previously, the Company is focused on selling its secondary assets and redeploying that capital into higher quality investments in its target markets.
At quarter-end, the Company completed the acquisition of 8000 Sunset, a 171,400 square foot grocery-anchored shopping center, located on the Sunset Strip in the West Hollywood submarket of Los Angeles, California. This location boasts strong three-mile trade area demographics including a population density of 240,000 people and average household incomes of $104,000. The property is currently 94% leased and is anchored by the California-based, specialty grocer, Trader Joe's.
Subsequent to quarter-end, the Company purchased Roswell Crossing, a 202,000 square foot shopping center in Roswell, Georgia, an affluent suburb of Atlanta. Anchored by Trader Joe’s, Walgreens, OfficeMax and PetsMart, the trade area has average household incomes are over $128,000 and 66% of the residents are college graduates within a three-mile trade area. Year-to-date, the Company has invested $152 million in quality shopping centers in great markets.