Retail Fire Sale

This shoe hasn't even dropped yet. Remember the impacts of cotenancy clauses - most of these retail properties will be garbage in 6-12 months from a cash flow perspective. Only the stabilized assets in the best markets (top 10 submarkets of the the top 10 markets in the country) will be investment grade.

Benderson buys back local plazas at a discount
Firm pays 30% less for properties it sold five years ago

By Jonathan D. Epstein NEWS BUSINESS REPORTER

Charles Lewis/Buffalo News
The Boulevard Consumer Square shopping center in Amherst is among eight local plazas that Benderson Development Co. is buying back from Developers Diversified Realty Corp.

Benderson Development Co., Buffalo’s biggest homegrown retail landlord, is pulling off a major financial coup, buying back 11 shopping mall properties in upstate New York for significantly less than it sold them for just five years ago.

The commercial developer has signed contracts to buy eight malls or shopping plazas in Western New York, and three in other parts of the state, from Developers Diversified Realty Corp., a publicly traded real estate investment trust based outside Cleveland, according to sources familiar with the deal.

That will return more than 3 million square feet to Benderson’s local portfolio. Sources said the purchase price was between $160 and $175 million.

Read More Here: www.buffalonews.com/145/story/695399.html