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Urban Edge (UE) Acquires The Shops at Riverwood for $32.9M

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·3-min read
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Urban Edge Properties UE recently announced the acquisition of The Shops at Riverwood — a fully leased, grocery-anchored retail center in Boston, MA — for $32.9 million. The move comes as part of the company’s effort to boost its Boston area presence with the acquisition of premium, infill real estate in a core retail market.

With the resilient demand for essential retail and health care services in convenient urban locations, this buyout in Boston’s Hyde Park neighborhood seems a strategic fit for Urban Edge. The property has an anchor grocery store, Price Rite Marketplace as well as a wide collection of national and regional retail and service brands, such as Santander, Burger King, Boston Medical Center and Planet Fitness.

Moreover, Starbucks has executed a lease for a pad site, and the construction is likely to commence this summer. Starbucks’ presence is expected to drive more traffic from the neighboring population.

Encompassing 78,000 square feet across six stand-alone buildings, together with the future Starbucks, on an eight-acre site, The Shops at Riverwood is situated just seven miles south of downtown Boston. It enjoys strong demographics, with a three-mile population of roughly 181,000 people with average annual household incomes of $113,000. This indicates that the property is likely to enjoy solid footfall and healthy retail activities.

Retail REITs are poised to benefit from the rising income, backed by wage compensations and large savings accumulated during the pandemic. Due to widespread vaccination, shoppers' confidence is getting a boost, favoring retailers and their landlords. Moreover, a focus on essential retail and health care services tenants is gaining traction, and UE too is targeting to boost its portfolio with such properties.

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

Shares of UE have declined 19.2% over the past three months, wider than the industry’s fall of 14.7%.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

Stocks to Consider

Some key picks from the retail REIT sector are National Retail Properties NNN, Kite Realty Group Trust KRG and SITE Centers Corp. SITC.

The Zacks Consensus Estimate for National Retail Properties’ 2022 funds from operations (FFO) per share has moved 1.3% upward in the past month to $3.17. NNN presently carries a Zacks Rank of 2 (Buy).

The Zacks Consensus Estimate for Kite Realty’s 2022 FFO per share has moved 1.1% upward in the past month to $1.80. KRG presently carries a Zacks Rank #2.

The Zacks Consensus Estimate for SITE Centers' ongoing year’s FFO per share has been raised 1.8% over the past two months to $1.14. SITC carries a Zacks Rank #2 currently.

Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.


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National Retail Properties (NNN) : Free Stock Analysis Report
 
Kite Realty Group Trust (KRG) : Free Stock Analysis Report
 
Urban Edge Properties (UE) : Free Stock Analysis Report
 
SITE CENTERS CORP. (SITC) : Free Stock Analysis Report
 
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