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Deptford Walmart has a buyer; Pier at Caesars doesn't

RioCan of Toronto wants to own Deptford Landing; C-III can't unload Pier Shops at Caesars

RioCan Real Estate Investment Touch, Toronto, says it plans to pay $52 million to buy out the owners and creditors of the four-year-old Deptford Landing retail development, 8 miles SE of Center City at NJ 42 and Clements Bridge Road, Gloucester County NJ.

Deptford Landing is anchored by a Walmart and a Walmart-owned Sam's Club warehouse store.

(By contrast, C-III  Asset Management has been unable to sell the ritzy Pier Shops at Caesars development down the Expressway in Atlantic City, refusing buyers who bid under $25 milllion. The property had been appraised at $210 million in 2007. Lenders led by US Bank paid paid developer Taubman $25 million for the complex back in 2009; Taubman wrote off more than $100 million. Newark Star-Ledger on the recent failed auction here, Wall St Journal here.)

Previous owner of Deptford Landing is AIG Baker Shopping Center Properties LLC, an Alabama-based developer set up by troubled NY-based giant insurer American International Group in happier times.

In RioCan's Aug. 10 earnings statement here, the buyer says: "RioCan expects to purchase a 100% interest in Deptford Landing for a purchase price of US $52.0 million at a capitalization rate of 6.34%. 

"Cedar Realty Trust will manage the property," which "was built in 2008 and has a weighted average remaining lease term of 9.9 years." Besides the Walmart stores, "other notable tenants include Michaels, PetSmart and DSW Shoe Warehouse.

"As part of the acquisition, RioCan will assume the existing mortgage in the amount of US $33.6 million, with an interest rate of 6.10% and maturity date of January 1, 2021."