Regency Bolsters NY Presence With SunVet Mall Revamp

Regency Centers Corporation REG, in partnership with Blumenfeld Development Group, has announced its plan to revitalize the currently vacant SunVet Mall in Long Island, NY. The planned redevelopment involves transforming the site into a 168,000-square-foot, grocery-anchored, open-air shopping center, with the fourth Whole Foods Market in Suffolk County as the centerpiece.
This venture is a significant addition to Regency's portfolio, expanding its property count in the market to 11, following the acquisition of four properties from Serota Properties last year. The new center will be supplemented by two junior anchors, 53,000 square feet of shops and six outparcels, including a fresh location for Citibank.
Strategically positioned at the northwest corner of Sunrise Highway and Veterans Memorial Highway — the two major regional arteries — the reimagined SunVet shopping center promises to draw substantial consumer footfall.
In terms of operational control, Regency will retain the majority interest in the joint venture and oversee leasing and operations for the location. This could offer promising returns to its investors.
With a notable presence in the area and a significant partnership on its back, REG is setting the stage for substantial growth. This project will boost the company's visibility and consumer appeal, positioning it favorably for future endeavors.
Investors may consider Regency for their portfolios, given its commitment to strategic expansion and transformational projects that ensure its sustained relevance in the evolving retail landscape.
Recently, Regency announced that it has agreed to buy Urstadt Biddle Properties Inc. UBA, a real estate investment trust that owns and operates retail properties in the suburban New York metropolitan area. The all-stock transaction is valued at approximately $1.4 billion.
The transaction will create a combined portfolio of 481 properties with more than 56 million square feet of gross leasable area. The merger is expected to enhance Regency's geographic diversification, tenant mix, growth prospects and balance sheet strength.
Regency currently has a Zacks Rank #3 (Hold). Its shares have declined 8.1% in the past three months compared with its industry's fall of 6.3%.

A Stock to Consider

A better-ranked stock from the retail REIT sector is Saul Centers, Inc. BFS, which carries a Zacks Rank #2 (Buy) at present. 
The Zacks Consensus Estimate for Saul Centers' ongoing year's FFO per share has been revised marginally upward over the past week to $3.05.
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.

Image by Ivan Bandura on Unsplash