2014

Devonshire REIT Acquires Grocery-Anchored Center in Ohio for $35M

WHITEHOUSE, Ohio, June 16, 2014 /PRNewswire/ -- Devonshire REIT, Inc., a private real estate investment trust, announced today the acquisition of Pavilion Shopping Center in Beachwood, OH, a suburb of Cleveland, for $35 million.

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Pavilion Shopping Center is a 249,873 square foot Giant Eagle anchored power center with Big Lots, Marshalls, Michael's and Stein Mart as sub-anchors. Other national tenants include: Petco, Lane Bryant, Quiznos, Bruegger's Bagels, Sally Beauty Supply, GNC, Verizon Wireless, Ruby Tuesday and Huntington Bank. The property is 97% occupied with the one remaining vacant space currently under negotiation.

The center is located on Chagrin Boulevard just minutes from I-271 in Beachwood. This area includes some of the finest suburbs in the state of Ohio. Demographics surrounding the center are especially strong with an average household income of $146,701 within one mile, and almost 250,000 people live within 5 miles of the property.

Mike Denman, President of Real Estate Operations for Devonshire REIT said, "The Pavilion is a perfect example of Devonshire's acquisition philosophy - grocery-anchored, value-oriented, national tenants, high cash flow with upside and in an attractive sub-market. We also see it as a great opportunity to establish relationships with national tenants, like Stein Mart and Petco, who don't currently have stores in any of our other properties."

"While the merits of grocery-anchored centers, and attractive sub-market returns, just now seem to be making the industry news, the acquisition and management of these types of properties are built in to Devonshire's DNA. It's what we've done from the beginning, so we feel we are significantly ahead of the curve which gives us a competitive edge on getting deals like this one, which adds over $1 million to our cash flow after debt service, done," added Chris Campbell, CEO of Devonshire REIT.

Huntington Bank provided financing for the transaction.

Giant Eagle is one of the largest, privately owned and family-operated companies in the nation with over $9.3 billion in annual sales. Ranked number 27 on Forbes list of privately held companies, the company operates 218 stores across 4 states and employs over 36,000 people.

Big Lots is the nation's largest broadline closeout retailer with 1,470 stores across the United States and Canada generating over $5 billion in annual revenue. 

Marshalls is the U.S.'s second largest off-price family apparel and home fashion retailer with over 750 stores across 42 states and Puerto Rico.

Michaels Stores, Inc. is North America's largest arts and crafts specialty retailer with over 1,105 stores across the US and Canada, over 44,000 employees and $4.2 billion in annual sales. 

Stein Mart is an upscale national discount fashion retailer with over 260 stores across 29 states. In 2013, the company generated $25.5M in net income on total revenues of $1.26 billion.

Petco Animal Supplies is a privately held pet specialty retailer with over 1,300 stores across the United States, Mexico and Puerto Rico.

Devonshire REIT, Inc. is a fully integrated commercial real estate company that owns, operates, and develops dominant shopping centers and necessity properties primarily in the Midwest and Great Lakes regions of the United States. The company's portfolio consists of 44 properties representing over 3 million square feet of leasable space. Devonshire REIT is available for investment only through select community bank trust departments and Registered Investment Advisors. Additional information can be found at http://www.devreit.com.

Contact:
Todd Latham
817.485.5700
Email
10100 Waterville Street, Whitehouse, OH 43571
419.877.1010
www.devreit.com

This information is not an offer to sell or a solicitation of an offer to buy any security or to invest in any fund managed by, or otherwise affiliated with the Devonshire REIT, Inc.. It is for informational purposes only and may not be relied upon in connection with the purchase or sale of any security. Fund investment, if offered, is available only to accredited investors and will be made only upon the acceptance by Devonshire REIT, Inc. of completed subscription documents from qualified prospective investors who have read and fully understand any and all private placement memoranda prior to investment. Statements and certain other information contained herein, which can be identified by the use of forward-looking terminology such as "may," "will," "expect," "continue," "remains," "intend," "aim," "towards," "should," "prospects," "could," "future," "potential," "believes," "plans," "likely," "anticipate," "position," "probable," "committed," "achieve," and "focused," or the negative thereof or other variations thereon or comparable terminology, constitute "forward-looking statements" and should be considered as subject to the many risks and uncertainties that exist in the Company's operations and business environment. Such risks and uncertainties could cause actual results to differ materially from those projected. These uncertainties include, but are not limited to, economic conditions, market demand and pricing, competitive and cost factors, and other risk factors. Devonshire REIT, Inc. is under no obligation to update these forward-looking statements. The Securities and Exchange Commission has not approved or disapproved this investment vehicle or determined whether the information in this document is adequate or accurate. Final refinance and purchase numbers may vary slightly due to fluctuation in interest rates prior to close.

SOURCE Devonshire REIT



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