DDR and Blackstone to acquire 76 shopping centers for $1.975 billion

Beachwood, Ohio — DDR Corp. and an affiliate of Blackstone Real Estate Partners VII have announced the formation of a third joint venture to acquire 76 shopping centers currently owned by American Realty Capital Properties, Inc.



The joint venture will acquire the portfolio in a transaction valued at $1.975 billion, including assumed debt of $461 million and approximately $800 million of new financings.



Blackstone owns 95% of the common equity of the joint venture and an affiliate of DDR owns the remaining 5%. DDR will also invest up to a maximum of $300 million in preferred equity in the joint venture with a fixed dividend rate of 8.5%, and has agreed to provide customary leasing and management services.



In addition, DDR will have the right of first offer to acquire 10 of the assets. The transaction is expected to close in the third quarter.



The 16.4-million-sq.-ft. portfolio consists mostly of prime power centers located in Los Angeles, Houston, Denver, Chicago, Atlanta, Washington D.C. and Phoenix. Anchors include Whole Foods, Trader Joe's, The Fresh Market, Costco, Target, Walmart, Kohl's, PetSmart, Dick's Sporting Goods, Bed Bath & Beyond, and the TJX Cos.