Affiliates of USAA Real Estate Company Acquire an Interest in Regency Retail Portfolio

SAN ANTONIO, Oct. 30 /PRNewswire/ -- Affiliates of USAA Real Estate Company announce its acquisition of a partial interest in the Regency Retail Portfolio, which consists of eight grocery-anchored retail assets comprising 813,193 square feet. Transaction details have not been disclosed.

The portfolio, currently 94-percent leased by approximately 153 tenants, holds properties in major markets across the country including Los Angeles and the San Francisco Bay Area, Houston and Dallas/Ft. Worth, Orlando, Atlanta and Raleigh/Durham, North Carolina. Its top lessees provide over half of the portfolio's in-place rent, including The Kroger Company/Ralphs, Safeway, Inc., Publix Super Markets, the United States Postal Service, Longs Drugs (CVS/Pharmacy), Hallmark Gold Crown Stores and Subway Restaurants.

"The grocery-anchored portfolio, with long term leases in strong market locations will produce excellent cashflow and strong yields," says Pat Duncan, Chairman and CEO of USAA Real Estate Company. "We are also very pleased to be partnering with Regency, one of the nation's premier retail owners and operators."

USAA Real Estate Company affiliates have acquired an 80-percent interest of the portfolio, with Regency Centers Corporation - a public REIT and national developer, owner and operator of 440 grocery-anchored and community shopping centers and 21 regional offices - retaining 20 percent ownership.

"Regency is excited to partner with USAA on this quality grocery-anchored portfolio located in top markets across the country. These eight centers have been in the Regency portfolio for a number of years, have a strong operating history and are representative of the assets Regency and USAA will look to acquire in our new partnership," says Hap Stein, Chairman and CEO of Regency Centers.

Grocery anchors will provide 42 percent of the Portfolio's in-place rental revenue, with 66 percent of rent generated from these anchors as well as junior anchors and other nationally recognized tenants.

About Regency:
Regency is the leading national owner, operator and developer of grocery-anchored and community shopping centers. At September 30, 2009, the Company owned 409 retail properties, including those held in co-investment partnerships. Including tenant-owned square footage, the portfolio encompassed 54.1 million square feet located in top markets throughout the United States. Since 2000, Regency has developed 194 shopping centers, including those currently in-process, representing an investment at completion of $3.0 billion. Operating as a fully integrated real estate company, Regency is a qualified real estate investment trust that is self-administered and self-managed.

About USAA Real Estate Company
USAA Real Estate Company, with approximately $5 billion assets under management, provides co-investment, acquisition, build-to-suit and development services for corporate and institutional investors. USAA Real Estate is a subsidiary of USAA, a leading financial services company, serving military families since 1922. For more information, visit www.usrealco.com.

    For more information contact
    Sharon Ballenger (210) 641-8410