WASHINGTON (dpa-AFX) - DDR Corp. (DDR) said Saturday that one store location within its portfolio will close among the 42 announced today by Best Buy Co. Inc. (BBY)
The 30,000 square foot store is located at Fayette Pavilion, a 1.5 million square-foot prime power center located in Fayetteville, Georgia. The center is anchored by Walmart, Home Depot, Target, Kohl's, Publix, Dick's Sporting Goods, Belk, Bed Bath & Beyond, and more.
DDR said there is no co-tenancy impact related to this closing and Best Buy remains responsible for all economic obligations of the lease until expiration in January 2013. In addition, DDR holds this asset in joint venture with a 15% share.
Importantly, due to the known underperformance of Best Buy at this location, DDR said it has been proactively negotiating with national tenants for many months and expects to re-lease this space on more favorable terms before the Best Buy lease expires.
'Given our relationship and regular dialogue with Best Buy, this closure is not an unexpected event and we are well prepared to maximize the benefit of the opportunity. Most importantly, Best Buy's single closure in our portfolio speaks to the high-quality of DDR's prime assets and the productivity achieved by our tenants,' said Paul Freddo, senior executive vice president of leasing and development for DDR.
Including the assets in the recently announced EDT Retail acquisition that is expected to close in June 2012, DDR said it has ownership interest in 29 Best Buy locations, of which 16 assets are in joint venture. The average remaining lease term on the 29 locations is 4.7 years and 28 of the 29 stores are located within prime assets.
Copyright RTT News/dpa-AFX