SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 13, 2012
PHILLIPS EDISON ARC SHOPPING CENTER REIT INC.
(Exact name of registrant specified in its charter)
11501 Northlake Drive
Cincinnati, Ohio 45249
(Address of principal executive offices)
Registrants telephone number, including area code: (513) 554-1110
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Broadway Plaza Acquisition
On August 13, 2012, Phillips Edison ARC Shopping Center REIT Inc. (the Company), through a joint venture formed between a group of institutional international investors advised by CBRE Investors Global Multi Manager (the CBRE Global Investors) and the Companys wholly-owned subsidiary (the Joint Venture), purchased a shopping center containing 83,612 rentable square feet located on approximately 10.7 acres of land in Tucson, Arizona (Broadway Plaza) for approximately $12.7 million, exclusive of closing costs. The Company holds an approximate 54% interest in the Joint Venture and the CBRE Global Investors hold the remaining approximate 46% interest. The Joint Venture funded a portion of the purchase price through the assumption of existing mortgage indebtedness in the amount of approximately $7.0 million. The remainder of the purchase price was funded with proceeds of approximately $5.7 million drawn from the Joint Ventures existing property-level credit facilities.
Broadway Plaza, which was constructed in 1982, is approximately 94.0% leased to 25 tenants. The largest tenant at Broadway Plaza is a Sprouts Farmers Market, which occupies approximately 33.7% of the rentable square feet at Broadway Plaza. The current aggregate annual effective rent for the tenants of Broadway Plaza is approximately $1.1 million and the current weighted-average remaining lease term for the tenants is approximately 5.1 years. The current weighted-average effective rental rate over the lease term, which is calculated as the annualized effective rent divided by the leased rentable square feet, is approximately $13.83 per square foot.
Based on the current condition of Broadway Plaza, the Company does not believe that it will be necessary to make significant renovations to Broadway Plaza. The Companys management believes that Broadway Plaza is adequately insured.
On August 16, 2012, the Company issued a press release announcing its acquisition of Broadway Plaza.
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.