A joint venture commercial development project is underway for the construction of an approximate 700,000-square-foot shopping center on 108 acres in Pottsgrove, Pa., about 40 miles northwest of Philadelphia.
Cedar Shopping Centers today announced that it has entered into a joint venture agreement with a preferred equity participation by Cedar with Tristate Ventures, LP, a wholly-owned subsidiary of Fameco Real Estate, LP of Plymouth Meeting, Pa.
The property is expected to be substantially pre-leased to a number of national “big box” tenants prior to commencement of construction. Site improvements are expected to commence late in the fourth quarter of 2007. Completion and delivery of the entire project is expected by mid 2009.
Total project costs, including purchase of the land parcels, are estimated at $105 million. Cedar will provide up to $17.5 million as invested capital with a preferred return.
Tristate will be entitled to certain development fees and, through its affiliates including Fameco, will be responsible for construction, leasing and property management of the center. Cedar will have certain oversight rights and responsibilities.
Cedar will have a 60 percent interest in the venture and will have an option to purchase Tristate’s interest at a determinable agreed price three years after stabilization.
Tristate acquired the rights to develop the project from Sapphire Development Companies of King of Prussia, Pa., the original developer of the project.
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