Regency Centers (REG) Acquires The District At Metuchen
Zacks Investment Research | Jan 24, 2018 09:16PM ET
Regency Centers Corporation (NYSE:REG) recently announced that it has acquired The District at Metuchen — a Whole Foods Market-anchored shopping center — in Metuchen, NJ. The move comes as part of the retail real estate investment trust’s (REIT) strategic efforts to expand in this market.
Spanning 66,000 square feet of space, this shopping center is situated in the thriving downtown. It enjoys proximity to the I-287 and I-95 interchange. These are the main arteries of the metro New York market. Moreover, the Metuchen and Metropark stations are located nearby which services a total of 11,000 commuters each weekday.
Also, Metuchen enjoys high barriers to entry, while the immediate area is experiencing an inflow for residential needs. These raises hope for a greater footfall at this center and hence the buyout seems a strategic one. Further, besides Whole Foods Market (NASDAQ:WFM), the property has other notable names in its tenant roster, including European Wax, Title Boxing, and Chipotle Mexican Grill (NYSE:CMG) .
Notably, mall traffic continues to suffer amid rapid shift in consumers’ shopping preferences toward online channels, resulting in an increasing number of retailers jumping on the dot-com bandwagon. These have made retailers reconsider their footprint and eventually opt for store closures in recent times. In fact, the decision to close stores by a number of reputable retailers like Macy's, Inc. (NYSE:M) and J. C. Penney Company, Inc. (NYSE:JCP) have raised concerns over cash flows of mall landlords.
However, at such a time, Regency’s focus on building a premium portfolio of grocery-anchored shopping centers, which are usually necessity driven, augurs well. Such centers are usually necessity driven and steer a dependable traffic.
Moreover, groceries mark one of the major categories of U.S. consumer spending. Although online retailers have made efforts to penetrate deeper into the grocery business, only a minimal percentage of U.S. grocery shopping takes place online.
Regency currently carries a Zacks Rank #3 (Hold). Also, shares of the company have gained 3.5% in three months’ time and outperformed its Original post
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.