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RPT Realty (RPT) to Acquire Dedham Shopping Center for $131.5M

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RPT Realty (RPT - Free Report) , through its grocery-focused joint-venture platform R2G Venture LLC, is under contract to acquire the Dedham shopping center in Boston for a contract price of $131.5 million. The move marks a leading step toward the execution of its 2021 strategic acquisition plan.

The Dedham shopping center is located inside the 128 loop (Interstate 95). This 510,000-square-foot grocery-anchored shopping center enjoys solid trade area demographics with a three-mile average household income of $136,000 and population density of 109,000. Therefore, with its thriving and highly populated infill location, the property is likely to see decent demand and generate strong cash flows for the company.

The center is 91.8% occupied, currently. It is anchored by Stop and Shop, and shadow anchored by Lowe’s (LOW - Free Report) . The property is home to thriving retailers and quick service restaurants like T.J. Maxx, Dick’s Sporting Goods (DKS - Free Report) , Starbucks (SBUX - Free Report) , and Chipotle.

RPT Realty is focused on expanding in the high growth targeted markets of Boston, Nashville, Tampa and Atlanta. With eight of the nine centers being grocery-anchored, Boston is anticipated to become the company’s third largest market.

The company closed its proposed acquisition of grocery-anchored shopping center, Newnan Pavilion, in Atlanta, for $41.6 million. It has either closed or is under contract on nine multi-tenant open-air shopping centers, with a gross acquisition value of roughly $500 million.

Per management, “The power of our strategic joint ventures coupled with our wholly owned platform have positioned RPT to quickly redeploy $500 million of capital into highly sought after top national markets, which we expect will allow for accelerated and accretive earnings growth in 2021 and 2022.”

As of June 30, 2021, RPT Realty's property portfolio consisted of 50 multi-tenant shopping centers, which includes five shopping centers owned through a joint venture, 15 net lease retail properties owned through a separate joint venture, and 13 net lease retail properties held for sale.

However, softness in the retail real estate sector has affected the performance of RPT Realty.

Shares of this company have gained 4.3% over the past six months, underperforming the industry's growth of 28.4%.

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The company carries a Zacks Rank #3 (Hold), at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.