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Cedar Realty Trust Reportedly Weighing A Full Sale

A 2018 rendering of Cedar Realty's plans for the East River Park shopping center at 322 40th St. NE in Washington, D.C.

Cedar Realty Trust is said to be considering a full sale or parting ways with its portfolio of retail and mixed-use developments.

The New York-based firm owns, manages and redevelops a portfolio topping 9M SF of mostly grocery-anchored retail and mixed-use properties in the Northeast Corridor, from Washington, D.C., to Boston, and is looking for ways to maximize shareholder value, Bloomberg reports.

The grocery-anchored portfolio could score financing at a sale price of $965M, according to Bloomberg. Shares in Cedar leaped 12% on Friday at the prospect of its takeover or breakup. Stocks were at $19.08 in late morning trading. Cedar’s board Thursday announced it launched a strategic review of strategic alternatives, per MarketWatch, though the company did not comment to Bloomberg regarding the specifics of the sales or mergers.

Cedar is developing Northeast Heights at the intersection of Minnesota Avenue and Benning Road NE in Washington, D.C., having received a $105M construction loan from JPMorgan for the first phase of the development in May, as Bisnow previously reported. 

Ultimately, the development would feature 1,300 residential units, 200K SF of retail and the office building. It is planned to replace two low-rise retail properties, the Senator Square shopping center and the East River Park shopping center. Last year, it was announced that the 700-person Department of General Services would fill the project's office component.

Any sale of Cedar would be the latest in a flurry of commercial real estate M&A deals in 2021 as companies take advantage of low interest rates to diversify their portfolios, especially in asset classes that have thrived amid the coronavirus pandemic. That has included deals in the shopping center space, such as REITs Kimco Realty and Weingarten Realty joining forces in April to create a $20.5B company. 

CORRECTION, SEPT. 13, 5:30 P.M. ET: This story has been updated to reflect that Cedar's grocery-anchored portfolio alone could score financing at a sale price of $965M.

Related Topics: M&As, REITs, Cedar Realty Trust, M&A, REIT M&A