Real Estate Investments

9 Months Ended

Sep. 30, 2022

The following real estate investment transactions have occurred during the nine months ended September 30, 2022.

The Company evaluated the following acquisitions and determined that substantially all of the fair value related to each of the acquisitions was concentrated in single identifiable assets. The Company allocated the total consideration for the acquisitions to the individual assets and liabilities acquired on a relative fair value basis. All transaction costs incurred in the acquisitions were capitalized.

Property Asset Acquisitions

On April 1, 2022, the Company acquired the property known as Olympia Square North, located in Olympia, Washington, within the Seattle metropolitan area, for an adjusted purchase price of approximately $18.4 million. Olympia Square North is approximately 90,000 square feet and is anchored by Albertsons Supermarket. The property was acquired with cash on hand and borrowings under the credit facility.

On April 1, 2022, the Company acquired the property known as Powell Valley Junction, located in Gresham, Oregon, within the Portland metropolitan area, for an adjusted purchase price of approximately $17.7 million. Powell Valley Junction is approximately 109,000 square feet and is anchored by Walmart Neighborhood Market. The property was acquired with cash on hand and borrowings under the credit facility.

On May 17, 2022, the Company acquired the property known as Village Oaks Shopping Center, located in Martinez, California, within the San Francisco metropolitan area, for an adjusted purchase price of approximately $24.1 million. Village Oaks Shopping Center is approximately 80,000 square feet and is anchored by Save Mart (Lucky California) Supermarket. The property was acquired with cash on hand and borrowings under the credit facility.

On August 19, 2022, the Company acquired two properties known as Ballinger Village, located in Shoreline, Washington, within the Seattle metropolitan area, and Thomas Lake Shopping Center located in Mill Creek, Washington, within the Seattle metropolitan area, for an adjusted purchase price of approximately $29.3 million and $31.1 million, respectively. Ballinger Village is approximately 111,000 square feet and is anchored by Thriftway Supermarket and Rite Aid Pharmacy. Thomas Lake Shopping Center is approximately 111,000 square feet and is anchored by Albertsons Supermarket and Rite Aid Pharmacy. These properties were acquired by the Company using proceeds from the sale of one of its shopping centers, discussed below, as well as cash on hand and borrowings under the credit facility.

The financial information set forth below summarizes the Company’s purchase price allocation for property assets acquired during the nine months ended September 30, 2022 (in thousands):


	September 30, 2022
Assets
Land	$	35,240
Building and improvements	99,589
Acquired lease intangible asset	4,782
Deferred charges	2,851
Assets acquired	$	142,462

Liabilities

Acquired lease intangible liability	21,823
Liabilities assumed	$	21,823

The following table summarizes the operating results included in the Company’s historical consolidated statement of operations for the three and nine months ended September 30, 2022, for property assets acquired during the nine months ended September 30, 2022 (in thousands):


	Three Months Ended		Nine Months Ended
	September 30, 2022		September 30, 2022
Statement of operations:
Revenues	$	2,198	$	3,303
Net income attributable to Retail Opportunity Investments Corp.	$	962	$	1,372

Property Disposition

On August 19, 2022, in connection with the acquisitions of Ballinger Village and Thomas Lake Shopping Center discussed above, the Company sold Aurora Square, a shopping center located in Shoreline, Washington. The sales price of $36.2 million, less costs to sell, resulted in net proceeds of approximately $34.4 million. The Company recorded a gain on sale of real estate of approximately $7.7 million during the three and nine months ended September 30, 2022 related to this property disposition.