How much is a Wegmans-anchored shopping center worth?
In Central Pennsylvania, the going rate is $80.8 million. That is how much Ohio-based DDR Corp. received for selling Silver Spring Square in Silver Spring Township, the company disclosed Tuesday as part of its first-quarter earnings report.
DDR sold the large Cumberland County shopping center on April 17 to The Wilder Companies, a privately held Boston-based retail real estate firm, in partnership with an institutional real estate fund. Terms of the deal were not disclosed at the time.
The deal includes 342,600 square feet of commercial real estate, including the 126,240-square-foot Wegmans store.
Silver Spring Square, which opened in 2007 on the site of a former speedway and mobile home park, hosts a long list of national retailers, including Best Buy, Ross, Bed Bath & Beyond, Petco, Lane Bryant and Ulta, among others. There also are seven pad sites occupied by Advance Auto Parts, Longhorn Steakhouse, Chili’s, PNC Bank, Chick-fil-A, Panera Bread and Wells Fargo.
The entire center on the Carlisle Pike is 568,977 square feet. That total includes stores owned and occupied by Target and Kohl’s, which were not part of the deal, according to CBRE Group. CBRE represented the seller and found the buyer.
Florida-based Regency Centers developed the shopping center more than a decade ago. DDR acquired the property in 2013 as part of a larger shopping center portfolio deal with joint-venture partner and private-equity firm Blackstone Group. The partnership paid $332 million for seven properties, including Silver Spring Square.
In 2014, DDR assumed sole ownership of that seven-property portfolio, paying $395.3 million. A breakdown of each property in the deal was not available.
DDR recently has been selling assets to reduce its debt. Part of that process includes spinning off some of its assets into a separate real estate investment trust. The company sold 15 shopping centers and land parcels in the first quarter.