Regency Centers Corporation (REG) recently completed the acquisition of Oak Shade Town Center, a 103,762 square foot neighborhood shopping center in Davis, California for $35.0 million.
Oak Shade Town Center is anchored by three major stores Safeway, Rite Aid and OfficeMax. This transaction is expected to be beneficial for Regency owing to the strong growth control ordinances limiting future retail development in Davis city. The proximity of the center to the University of California and the El Macero Country Club is also a major advantage.
This acquisition is in line with Regency's strategy of acquiring premier grocery-anchored centers. A constant feature of Regency's centers is their market-dominant anchors and favorable location.
Jacksonville, Florida-based Regency Centers is a self-administered real estate investment trust (REIT), primarily engaged in owning, operating, and developing grocery-anchored retail shopping centers in the U.S.
With properties in high income, high-barrier markets, Regency’s retail strip center portfolio is among the best in the sector and allows it to continually perform at the top-end of its peer group. The company’s dominant anchor tenants are grocery stores, a segment that is comparatively less affected in a challenging economy.
Regency Centers currently retains a Zacks #3 Rank, which translates into a short-term Hold rating. We are also maintaining our long-term Neutral recommendation on the stock. One of its competitors, Developers Diversified Realty Corp. (DDR) holds a Zacks #2 Rank, which implies a short-term Buy rating.
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