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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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<SEC-DOCUMENT>0000950123-09-031286.txt : 20101005
<SEC-HEADER>0000950123-09-031286.hdr.sgml : 20101005
<ACCEPTANCE-DATETIME>20090806165754
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0000950123-09-031286
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20090806

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			CEDAR SHOPPING CENTERS INC
		CENTRAL INDEX KEY:			0000761648
		STANDARD INDUSTRIAL CLASSIFICATION:	REAL ESTATE INVESTMENT TRUSTS [6798]
		IRS NUMBER:				421241468
		STATE OF INCORPORATION:			MD
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		44 SOUTH BAYLES AVENUE
		CITY:			PORT WASHINGTON
		STATE:			NY
		ZIP:			11050
		BUSINESS PHONE:		5167676492

	MAIL ADDRESS:	
		STREET 1:		44 SOUTH BAYLES AVENUE
		CITY:			PORT WASHINGTON
		STATE:			NY
		ZIP:			11050

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	CEDAR INCOME FUND LTD /MD/
		DATE OF NAME CHANGE:	20001128

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	UNI INVEST USA LTD
		DATE OF NAME CHANGE:	20000407

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	CEDAR INCOME FUND LTD
		DATE OF NAME CHANGE:	19920703
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>CEDAR SHOPPING CENTERS, INC.<BR>
44 SOUTH BAYLES AVENUE<BR>
PORT WASHINGTON, NY 11050-3765</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">August&nbsp;6, 2009
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Ms.&nbsp;Linda VanDoorn, Senior Assistant Chief Accountant<BR>
Securities and Exchange Commission<BR>
Division of Corporation Finance<BR>
100 F Street, N.E., Mail Stop 3010<BR>
Washington, DC 20549

</DIV>

<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
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    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left">Re:</TD>
    <TD>&nbsp;</TD>
    <TD><U>Cedar Shopping Centers, Inc</U>.<br>
<U>Form&nbsp;10-K for the year ended December&nbsp;31, 2008</U><br>
<U>Form&nbsp;10-Q for the quarter ended March&nbsp;31, 2009</U><BR>
<U>File No.&nbsp;001-31817</U></TD>
</TR>
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Dear Ms.&nbsp;VanDoorn:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Reference is made to your letter dated July&nbsp;23, 2009 bearing the captioned file number and
headings. The following is respectfully submitted by Cedar Shopping Centers, Inc. (the &#147;Company&#148;)
in response thereto:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U>Form&nbsp;10-K</U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U>Item&nbsp;1A. Risk Factors, page 9</U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">1. <U>Your Comment and Requested Clarification</U>: Refer to the last paragraph on Page 10. We
note that a number of tenants in the process of negotiating or renegotiating leases have sought to
limit their payment of base rent, allocable common area charges and real estate taxes and, in some
cases, have unilaterally reduced rent payments. In addition, the Company&#146;s collection of common
area charges has declined and may decline further as a result of vacancies, default, and tenant
resistance. Please tell us what consideration you gave to discussing within MD&#038;A the effects these
adverse trends have had and are expected to have on operating results.
</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Ms.&nbsp;Linda VanDoorn, Senior Assistant Chief Accountant<BR>
Securities and Exchange Commission, Division of Corporation Finance<BR>
August&nbsp;6, 2009<BR>
Page 2

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>The Company&#146;s Response</U>: The Company in MD&#038;A sets forth the most significant items in
the Company&#146;s results of operations attributable to properties held in both years. The Company&#146;s
disclosures in Risk Factors relating to its tenants encompass both current experience as well as
perceived prospective risks. During the latter part of 2008, a number of the Company&#146;s tenants
requested rent relief. It is noted that certain retail chains requested &#147;programmatic&#148; relief from
all landlords. The Company determined that it was in its best interest to assist selected tenants
through the worsening economic times rather than to create or accept vacancies which could
adversely affect the remaining tenants in a shopping center. In 2008, the Company granted certain
short-term rent relief and, in very limited instances, rent reductions, based on tenant occupancy
costs compared to sales, past sales history, strength of balance sheet, importance to other
tenants, competition, and other factors deemed relevant to the Company. The aggregate amount of
such relief granted had only limited impact on results of operations for 2008, as is demonstrated
by (a)&nbsp;the continued solidity of our tenant base overall as indicated by our occupancy levels that
have remained at 92% from 2007 through June&nbsp;30, 2009, and (b)&nbsp;an increase in base rent, as is
further detailed in the MD&#038;A. The foregoing notwithstanding, there can be no assurance that the
amount of such relief will not become more significant in future periods.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company proposes to revise relevant disclosures in future filings as per the addition
(underscored)&nbsp;to the following section excerpted from the MD&#038;A section of the Company&#146;s Form 10-K
for the fiscal year ended December&nbsp;31, 2008 (&#147;Results of Operations&#148;, &#147;Comparison of 2008 to
2007&#148;):
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%"><B>Properties held in both years</B>. The Company held 96 properties throughout 2008 and 2007.
Total revenues decreased primarily as a result of (i)&nbsp;a decrease in the amortization of
intangible lease liabilities ($230,000) resulting from expiration of applicable lease terms
in the ordinary course, (ii)&nbsp;a decrease in the straight-line rents in the ordinary course
($1,069,000) partially offset by an increase in base rent from lease commencements at the
Company&#146;s properties ($583,000) which includes a decrease in base rent at a property in
which a tenant vacated ($417,000), (iii)&nbsp;a decrease in percentage rental income due to some
lower tenant sales ($654,000), (iv)&nbsp;a decrease in tenant recoveries ($832,000) primarily
due to a higher collection rate in 2007 due to billing system improvements made in 2006 and
2007, and (v)&nbsp;a decrease in other income ($859,000) predominately related to a decrease in
lease termination income partially offset by an increase in insurance proceeds. <U>In
connection with the worsening economic climate during the latter part of 2008, the Company
received several requests from tenants for rent relief. While the Company did in fact grant
such relief in a small number of selected circumstances, the aggregate amount of such
relief granted had limited impact on results of operations for 2008. However, there can be
no assurance that the amount of such relief will not become more significant in future
periods.</U>
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Ms.&nbsp;Linda VanDoorn, Senior Assistant Chief Accountant<BR>
Securities and Exchange Commission, Division of Corporation Finance<BR>
August&nbsp;6, 2009<BR>
Page 3

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U>Item&nbsp;8 &#151; Financial Statements and Supplementary Data, page 37</U><BR>
<U>Note 2 &#151; Summary of Significant Accounting Policies, page 44</U><BR>
<U>Intangible Lease Asset/Liability, page 46</U>

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">2. <U>Your Comment and Requested Clarification</U>: We note that the amounts allocated to above
market leases and below market lease values are amortized to rental income, over the remaining
non-cancelable terms of the respective leases. Please clarify whether the below market leases have
fixed rate renewal options and if so how those are considered in the determination of the
amortization period.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>The Company&#146;s Response</U>: The major tenancies that comprise the intangible
lease liabilities on the Company&#146;s balance sheet relate, for the most part, to anchor tenants at
the Company&#146;s shopping centers. Most of the leases with these larger tenants do, in fact, have
renewal options which, in almost all cases, are at fixed dollar
amounts and which are not exercisable until a date substantially in
the future. As part of purchase price allocations, the Company
considered renewal options in determining the fair value of the lease
contracts and
amortization periods of the lease values and, based on such review, the Company concluded that it
was not likely that tenants in these leases would exercise their options once the original lease terms
expired. Such conclusion was due in large part to important business reasons (several of which the
Company has indeed experienced, including tenant bankruptcies) as to why such options are not, in
many cases, exercised. They include, but are not limited to, the following: (i)&nbsp;changed consumer
traffic patterns since the Company acquired the relevent shopping
centers (ii)&nbsp;actual or potential declining tenant sales and
profitability as a result of competition, (iii)&nbsp;acquisitions of or mergers with other chains
resulting in consolidation of operations within the region, (iv)&nbsp;tenant exiting the trade area
entirely, (v)&nbsp;tenant decision to upsize or downsize some or all of its stores, (vi)&nbsp;tenant being
offered even better terms by a competing shopping center owner within the trade area, (vii)
impending competition from newly built or to-be built shopping centers within the trade area, and
(viii)&nbsp;tenant composition in the shopping center differing, to tenant&#146;s disadvantage, from that
when the original lease commenced. As a result of the Company&#146;s overall analysis, the below market
leases are being amortized over such fixed, non-cancellable terms of the respective leases.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U>Form&nbsp;10-Q for the quarter ended March&nbsp;31, 2009</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U>Notes to Consolidated Financial Statements</U><BR>
<U>Note 2 &#151; Summary of Significant Accounting Policies</U><BR>
<U>Recently-Issued Accounting Pronouncements, page 21</U>

</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Ms.&nbsp;Linda VanDoorn, Senior Assistant Chief Accountant<BR>
Securities and Exchange Commission, Division of Corporation Finance<BR>
August&nbsp;6, 2009<BR>
Page 4

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">3. <U>Your Comment and Requested Clarification</U>: We note that you have reclassified certain
redeemable operating partnership units into permanent equity while the remaining units that do not
meet the requirements of EITF D-98 continue to be classified as temporary equity on the balance
sheet. Explain to us the difference in the redemption terms or other provisions of the units that
support your conclusion of classifying these units between permanent and temporary equity.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>The Company&#146;s Response</U>: Note 1 to the Consolidated Financial Statements states &#147;...OP
Units...are economically equivalent to the Company&#146;s common stock and are convertible into the
Company&#146;s common stock at the option of the respective holders on a one-to-one basis...&#148;. Based on
the Company&#146;s assessment and a review of the documents applicable to the OP Units, it was
determined that certain of the holders of the Units had registration rights upon conversion of
their Units into shares of the Company&#146;s common stock. Those provisions generally provide such
holders with the right to demand registration under applicable federal and state securities laws of
the common stock of the Company underlying such OP Units, subject to certain restrictions.
Accordingly, applying the concept in EITF 00-19 that settlement, in effect, in registered shares is
outside the control of the Company inasmuch as, for example, registration statements must be filed
and kept effective, periodic filings must be timely made, and legal and audit opinions will
typically be required, such OP Units (the &#147;Mezz OP Units&#148;) would not meet the requirements for
&#147;permanent equity&#148; classification, as set forth in EITF D-98, and have therefore been classified as
&#147;temporary equity&#148;. In those cases where holders of OP Units do not have registration rights, thus
allowing the Company to settle conversion requests in unregistered shares, settlement in
unregistered shares is within the control of the Company. As a result, such OP Units have been
classified as &#147;permanent equity&#148;.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In connection with the above, the Company hereby acknowledges that:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">1. The Company is responsible for the adequacy and accuracy of the disclosures in the filings;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">2. Staff comments or changes to disclosures in response to staff comments do not foreclose the
Commission from taking any action with respect to the filings; and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">3. The Company may not assert staff comments as a defense in any proceeding initiated by the
Commission or any person under the federal securities laws of the United States.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our responses will be appropriately contained in future filings. If, after review hereof, you
should have any additional questions or should require any additional information, please contact
the undersigned at (direct)&nbsp;516-944-4525. Thank you.
</DIV>


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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Ms.&nbsp;Linda VanDoorn, Senior Assistant Chief Accountant<BR>
Securities and Exchange Commission, Division of Corporation Finance<BR>
August&nbsp;6, 2009<BR>
Page 5

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Very truly yours,
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">/s/ LEO S. ULLMAN<BR>
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><BR>
Leo S. Ullman<BR>
Chairman, Chief Executive Officer and President

</DIV>


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