Pennsylvania shopping center in the works

Developer secures tenant for 20-year term

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Cedar Shopping Centers Inc. today announced it has entered into a joint venture with Tristate Ventures L.P., an affiliate of the Fameco real state group, for the development of a 137,000-square-foot shopping center in Stroudsburg, Pa. The property, located at the intersection of Interstate 80 and Routes 611 and 33, is situated on nearly 18 acres and will be anchored by a 76,500-square-foot supermarket. The estimated total project cost is approximately $37 million. Cedar will be obligated for capital contributions of up to $9.5 million, of which it has currently funded approximately $5.6 million from its existing secured revolving credit facility. Cedar will be entitled to a cumulative preferred return on its invested funds and will own a 60 percent profits interest in the venture. A "buy-sell" may be triggered by either party three years after stabilization. The venture previously acquired the land parcels at a cost of approximately $14.9 million, subject to ex...