Urban Edge Properties Acquires Sunrise Mall in Massapequa, NY

Rhea-AI Summary

Urban Edge Properties (NYSE:UE) has announced the acquisition of Sunrise Mall in Massapequa, NY for $29.7 million, with up to $6 million in contingent consideration. This property consists of 1.2 million square feet of retail space on 77 acres. Currently 65% occupied, it features anchor tenants like Macy’s and Sears. The location benefits from excellent access and is situated in a region with a population of 1.0 million and an average income of $125,000. Urban Edge has partnered with Sagamore Hill Partners and JG Petrucci to maximize redevelopment opportunities.

Positive

• Acquisition value of $29.7 million plus potential $6 million contingent payment highlights significant investment.
• Strategic location near major roadways enhances accessibility to New York City and Long Island.
• Potential for redevelopment due to in-place zoning for industrial and other uses.
• Partnership with Sagamore Hill Partners and JG Petrucci provides expertise in redevelopment.

Negative

• Current occupancy rate of only 65% may indicate challenges in attracting tenants.
• -

Urban Edge Properties (NYSE:UE) today announced that it has acquired Sunrise Mall in Massapequa, NY from Unibail-Rodamco-Westfield for $29.7 million plus up to $6 million of additional contingent consideration. The property encompasses 1.2 million square feet of retail space situated on 77 acres in Nassau County, Long Island.

Sunrise Mall provides tremendous redevelopment opportunities given its unique scale and in-place zoning which provides for industrial and other uses. Its location benefits from excellent access to major roadways that connect the property to the eastern edge of New York City and the entirety of Long Island.

The mall is currently 65% occupied with anchor tenants including Macy’s, Sears, and Dick’s Sporting Goods. The existing trade area encompasses a dense, affluent population of approximately 1.0 million people with an average household income of $125,000.

“Sunrise Mall is a unique asset with a prime location in a dense, attractive region along the southern shore of Long Island,” said Jeff Olson, Chief Executive Officer of Urban Edge. “This acquisition provides a terrific opportunity for Urban Edge to leverage our redevelopment expertise in repurposing underutilized land and creating value.”

Urban Edge has formed a strategic partnership with Sagamore Hill Partners, an owner-operator affiliate of RIPCO Real Estate, and JG Petrucci, an established developer of industrial assets, as part of the acquisition. Urban Edge will serve as the managing member of the partnership with an 82.5% interest.

ABOUT URBAN EDGE PROPERTIES:

Urban Edge Properties is a NYSE-listed real estate investment trust focused on managing, acquiring, developing, and redeveloping retail real estate in urban communities, primarily in the New York metropolitan region. Urban Edge owns 79 properties totaling 16.3 million square feet of gross leasable area. Visit uedge.com to learn more.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210104005119/en/

FAQ

What is the significance of Urban Edge's acquisition of Sunrise Mall?

The acquisition allows Urban Edge to leverage redevelopment opportunities and enhance property value in a strategic location.

What is the total cost of the Sunrise Mall acquisition?

Urban Edge acquired Sunrise Mall for $29.7 million with an additional contingent consideration of up to $6 million.

Who are the partners involved in the Sunrise Mall acquisition?

Urban Edge has partnered with Sagamore Hill Partners and JG Petrucci in the acquisition.

What is the current occupancy rate of Sunrise Mall?

Sunrise Mall is currently 65% occupied.

How does the location of Sunrise Mall impact its potential?

The mall's location offers excellent access to major roadways, facilitating connectivity to New York City and Long Island.