Acadia Realty Trust (NYSE: AKR) today announced continued activity across its dual – core and fund – platforms, completing $240 million of acquisitions since mid-November 2012. Additionally, in December 2012, Acadia sold, or entered into a firm contract to sell, $418 million of assets within its fund portfolios.
In December 2012, Acadia, through Acadia Strategic Opportunity Fund IV LLC (“Fund IV”), completed three new investments for an aggregate purchase price of $151 million. Most significantly, this included a $139 million portfolio acquisition on Lincoln Road in Miami Beach, Florida. Acadia launched Fund IV in May 2012 with $541 million of capital commitments for the purpose of making opportunistic and value-add investments in retail real estate. With leverage, Fund IV has approximately $1.5 billion of buying power.
Lincoln Road, Miami Beach, FL.
This week, Acadia, in partnership with Terranova Corporation, acquired a 54,400 square foot, three-property portfolio located at 719, 801, and 826 Lincoln Road for $139 million. The portfolio, which is situated at the “Main & Main” intersection of Lincoln Road and Meridian Avenue, is leased to a combination of local tenants and national retailers including Fossil, Aldo, Kiehl’s, and Dylan’s Candy Bar. Leases representing nearly half of the portfolio’s annual base rent expire within the next 24 to 36 months. Given that rents on Lincoln Road have increased significantly over the past few years, the majority of the portfolio’s in-place rental rates are significantly below market. In addition, there is the ability to redevelop some of the assets as well as improve the portfolio’s merchandise mix. Acadia, through Fund III, previously partnered with Terranova, in February 2011, on the successful acquisition of another 60,700 square foot, three-property portfolio located at 600 and 741 Lincoln Road and 723 N. Lincoln Lane.
“Over the past few years, Lincoln Road has established itself as a ‘must-have’ location for our retailers, with exceptional global branding opportunities matched by high sales productivity,” stated Kenneth F. Bernstein, President and CEO of Acadia Realty Trust. “Tenants are attracted to this prime street-retail market as an essential component to their various multi-channel retailing initiatives. As such, we are pleased to continue building a presence along this vibrant international shopping and dining corridor in partnership with the extremely talented team at Terranova. Led by Stephen Bittel, Terranova has been instrumental in executing the leasing and development strategy for our existing South Beach assets. Most recently, this has included bringing Armani Jeans and Khong River House, by restaurateur John Kunkel, to 741 Lincoln Road. We look forward to participating in Lincoln Road’s next chapter with our valued partner.”