Retail Properties of America, Inc. Announces Year-to-Date Strategic Transactions

Retail Properties of America, Inc. Announces Year-to-Date Strategic Transactions

OAK BROOK, Ill.--(BUSINESS WIRE)-- Retail Properties of America, Inc. (NYSE: RPAI or the "Company") today announced that it entered into a purchase agreement to acquire two assets in the New York City market, Pelham Manor Shopping Plaza ("Pelham") and Fordham Place ("Fordham"), for a gross purchase price of $192.4 million. In addition, the Company completed the dissolution of its joint venture arrangement with RioCan Real Estate Investment Trust ("RioCan"). Under the terms of the dissolution, the Company acquired RioCan's 80% ownership interest in five properties. The Company, in turn, sold its 20% interest in the remaining eight properties to RioCan. Furthermore, on a year-to-date basis, the Company has sold or has entered into agreements to sell $174.4 million of non-strategic or non-core assets. With the announcement of these transactions, the Company has announced year-to-date acquisitions of $292.3 million and year-to-date dispositions of $269.9 million.

ACQUISITION ACTIVITY

Pelham Manor Shopping Plaza, Pelham Manor, New York

Pelham is a 228,000 square foot community center located in Pelham Manor, New York, in a dense, in-fill sub-market approximately 10 miles north of Manhattan and easily accessible to the 400,000 residents within a three-mile radius. Built in 2008, Pelham is currently 98% leased, with an attractive mix of national tenants including BJ's Wholesale Club, Michaels, PetSmart and Five Below.

Fordham Place, The Bronx, New York

Fordham is a mixed-use, Class A property located in the Bronx, New York, across from Fordham University and the Metro North Station. Fordham is easily accessible to the 1.2 million residents within a three-mile radius and sits in the heart of the retail corridor along Fordham Road, one of New York City's busiest and most productive commercial areas. Built in 1920 and redeveloped in 2009, Fordham is a 262,000 square foot, LEED Gold certified asset, comprised of 143,000 square feet of Class A office space and 119,000 square feet of retail space. The property is 100% leased and benefits from an impressive mix of nationally recognized retail tenants and government service and not-for-profit office tenants.

These acquisitions are expected to close during the fourth quarter of 2013, subject to satisfaction of customary closing conditions, including third party consents, and the properties will be added to the Company's unencumbered asset pool. These acquisitions will increase the Company's multi-tenant retail footprint in the New York City market by approximately 500,000 square feet.

RIOCAN TRANSACTION

On October 1, 2013, the Company acquired RioCan's 80% ownership interest in five properties. The properties have a value, net of mark-to-market adjustment on financing, of $124.8 million, with RioCan's 80% interest valued at $99.9 million. The Company assumed the joint venture's $67.9 million of in-place mortgage financing on those properties at a weighted average interest rate of 4.8%. Also, the Company sold to RioCan its 20% ownership interest in eight properties. The properties have a value, net of mark-to-market adjustment on financing, of $477.5 million, with the Company's 20% interest valued at $95.5 million. RioCan assumed the joint venture's $209.2 million of in-place mortgage financing on those properties at a weighted average interest rate of 3.7%.

ADDITIONAL DISPOSTION ACTIVITY

Year-to-date, asset sales and earnouts that have closed or are under agreement to sell total $174.4 million, including the Company's pro rata share of unconsolidated joint ventures. This amount includes $52.5 million that closed prior to June 30, 2013, $64.0 million that closed during the third quarter or subsequent to quarter end, and $57.9 million that is under contract and expected to close in the fourth quarter of 2013 or the first quarter of 2014, subject to satisfaction of customary closing conditions.

ABOUT RPAI

Retail Properties of America, Inc. is a fully integrated, self-administered and self-managed real estate investment trust that owns and operates high quality, strategically located shopping centers across 34 states. The Company is one of the largest owners and operators of shopping centers in the United States. The Company is publicly traded on the New York Stock Exchange under the ticker symbol RPAI. Additional information about the Company is available at www.rpai.com.

SAFE HARBOR LANGUAGE

The statements and certain other information contained in this press release, which can be identified by the use of forward-looking terminology such as "may," "expect," "continue," "remains," "intend," "aim," "should," "prospects," "could," "future," "potential," "believes," "plans," "likely," "anticipate," and "probable," or the negative thereof or other variations thereon or comparable terminology, constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbors created thereby. These forward-looking statements reflect the Company's current views about its plans, intentions, expectations, strategies and prospects, which are based on the information currently available to the Company and on assumptions the Company has made. Although the Company believes that its plans, intentions, expectations, strategies and prospects as reflected in or suggested by those forward-looking statements are reasonable, it can give no assurance that such plans, intentions, expectations or strategies will be attained or achieved. Furthermore, these forward-looking statements should be considered as subject to the many risks and uncertainties that exist in the Company's operations and business environment. Such risks and uncertainties could cause actual results to differ materially from those projected. These uncertainties include, but are not limited to, general economic, business and financial conditions, the ability to satisfy the closing conditions to the pending transactions described herein, including obtaining the required third party consents, and the ability to successfully operate the properties described herein, if acquired, and other risk factors, including those detailed in the sections of the Company's most recent Forms 10-K and 10-Q filed with the Securities Exchange Commission titled "Risk Factors". The Company assumes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

Retail Properties of America, Inc.
Michael Fitzmaurice, VP - Finance
630-634-4233

KEYWORDS: United States North America Illinois

INDUSTRY KEYWORDS:

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