8-K

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

_____________

FORM 8-K

_____________

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):  November 21, 2013

____________

PHILLIPS EDISON – ARC SHOPPING CENTER REIT INC.

(Exact name of registrant specified in its charter)

____________

Maryland	000-54691	27-1106076
(State or other jurisdiction of incorporation or organization)	(Commission File Number)	IRS Employer Identification No.

11501 Northlake Drive

Cincinnati, Ohio 45249

(Address of principal executive offices)

Registrant’s telephone number, including area code: (513) 554-1110

Not Applicable

(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:

□      Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

□       Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

□       Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

□       Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 8.01.  Other Events

Collington Plaza

On November 21, 2013, Phillips Edison – ARC Shopping Center REIT Inc. (the “Company”), through a wholly-owned subsidiary, purchased a grocery-anchored shopping center containing 121,955 rentable square feet located on approximately 12.7 acres of land in Bowie, Maryland (“Collington Plaza”) for approximately $30.5 million, exclusive of closing costs.  A portion of the purchase price consisted of the assumption of an approximate $24.3 million mortgage loan. The Company funded the remainder of the purchase price with proceeds from its ongoing initial public offering.  Collington Plaza was purchased from Collington Plaza, LLC, a Maryland limited liability company, which is not affiliated with the Company, its advisor or its sub-advisor.

Collington Plaza is approximately 100% leased to 19 tenants, including a Giant grocery store, which occupies approximately 53.2% of the total rentable square feet of the shopping center.  Based on the current condition of Collington Plaza, the Company’s management does not believe that it will be necessary to make significant renovations to the property. The Company’s management believes Collington Plaza is adequately insured.

Golden Town Center

On November 22, 2013, the Company, through a wholly-owned subsidiary, purchased a grocery-anchored shopping center containing 117,882 rentable square feet located on approximately 14.1 acres of land in Golden, Colorado (“Golden Town Center”) for approximately $19.0 million, exclusive of closing costs.  The Company funded the purchase price with proceeds from its ongoing initial public offering.  Golden Town Center was purchased from REIF Golden Colorado, LLC, a Delaware limited liability company, which is not affiliated with the Company, its advisor or its sub-advisor.

             Golden Town Center is approximately 89.1% leased to 13 tenants, including a King Soopers grocery store, which occupies approximately 59.1% of the total rentable square feet of the shopping center.  Based on the current condition of Golden Town Center, the Company’s management does not believe that it will be necessary to make significant renovations to the property. The Company’s management believes Golden Town Center is adequately insured.

Northstar Marketplace

             On November 27, 2013, the Company, through a wholly-owned subsidiary, purchased a grocery-anchored shopping center containing 96,356 rentable square feet located on approximately 9.4 acres of land in Ramsey, Minnesota (“Northstar Marketplace”) for approximately $14.0 million, exclusive of closing costs.  The Company funded the purchase price with proceeds from its ongoing initial public offering.  Northstar Marketplace was purchased from Sophia-Ramsey, LLC, a Minnesota limited liability company, which is not affiliated with the Company, its advisor or its sub-advisor.

Northstar Marketplace is approximately 96.6% leased to 14 tenants, including a Coborn’s grocery store, which occupies approximately 64.3% of the total rentable square feet of the shopping center.  Based on the current condition of Northstar Marketplace, the Company’s management does not believe that it will be necessary to make significant renovations to the property. The Company’s management believes Northstar Marketplace is adequately insured.

Press Release

On December 5, 2013, the Company issued a press release announcing its acquisition of Collington Plaza, Golden Town Center and Northstar Marketplace.

Item 9.01.  Financial Statements and Exhibits

(d)        Exhibits

99.1     Press Release dated December 5, 2013.

SIGNATURES

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.

	PHILLIPS EDISON – ARC SHOPPING CENTER REIT INC.
Dated: December 5, 2013	By:	/s/ R. Mark Addy___________________
			R. Mark Addy
			Co-President and Chief Operating Officer

EX-99.1

 

EXHIBIT 99.1

 

CONTACTS           From: Tony DeFazio	For: Emily Leverone Director of Investor Relations
DDCworks	Phillips Edison – ARC Shopping Center REIT Inc.
tdefazio@ddcworks.com	eleverone@phillipsedison.com
Ph: (484) 342-3600	Ph: (513) 746-2595

FOR IMMEDIATE RELEASE

Phillips Edison–ARC Shopping Center REIT Inc. Acquires Three Grocery-Anchored Shopping Centers, Increasing Total Acquisitions This Quarter to 14 Properties

CINCINNATI, OH, December 5, 2013 — Phillips Edison–ARC Shopping Center REIT Inc. (the “Company”) today announced the acquisition of three grocery-anchored shopping centers: Collington Plaza, Golden Town Center, and Northstar Marketplace. These acquisitions expand the Company’s presence in Maryland, Colorado and Minnesota, and bring the total number of properties acquired by the Company in the fourth quarter to 14. 

Collington Plaza is a 121,915 square foot grocery store-anchored shopping center located in Bowie, Maryland with convenient access to Washington, D.C. and Baltimore, Maryland. Collington Plaza is anchored by a 64,885 square foot Giant grocery store. Giant is the number one grocer by market share in the greater Washington, D.C. metropolitan statistical area. This is the first Giant grocery-anchored property in the Company’s portfolio. Collington Plaza is also leased to other national tenants such as Capital One Bank, Sally Beauty, Game Stop, GNC, and The UPS Store. 

Golden Town Center is a 117,882 square foot shopping center located in Golden, Colorado, a suburb of Denver 16 miles west of the city. A 69,693 square foot King Soopers grocery store anchors the shopping center. King Soopers is the number one grocer by market share in the Denver metropolitan statistical area. Other national tenants at Golden Town Center include Big 5 Sporting Goods, H&R Block, and JP Morgan Chase.

Northstar Marketplace is a 96,356 square foot shopping center located in Ramsey, Minnesota, a suburb of Minneapolis-St. Paul. Northstar Marketplace is anchored by a 61,975 square foot Coborn’s grocery store. Coborn’s is a leading grocer in the Minneapolis-St. Paul metropolitan statistical area which also operates its own brand of fuel stations. Northstar Marketplace includes a fuel station and is leased to national tenants such as Anytime Fitness, Dollar Cents, Subway, Verizon, and Caribou Coffee.

With the acquisitions of Collington Plaza, Golden Town Center and Northstar Marketplace, the Company’s current portfolio is comprised of interests in 72 properties anchored by 27 leading grocers in 21 states, with an aggregate portfolio purchase price of approximately $1.1 billion.

About Phillips Edison – ARC Shopping Center REIT Inc.

Phillips Edison-ARC Shopping Center REIT Inc. is a public non-traded REIT that seeks to acquire and manage well-occupied grocery-anchored neighborhood shopping centers having a mix of national and regional retailers selling necessity-based goods and services, in strong demographic markets throughout the United States.  The Company is co-sponsored by two industry leaders: Phillips Edison & Company, who has acquired over $2.3 billion in shopping centers throughout the United States, and AR Capital, LLC, a real estate investment program sponsor dedicated to governance best practices.  As of December 5, 2013, the Company owned, directly or indirectly through a joint venture in which it has a controlling interest, and managed an institutional quality retail portfolio consisting of 72 grocery-anchored shopping centers totaling approximately 7.4 million square feet.  For more information on the Company, please visit the website at www.phillipsedison-arc.com.  

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