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<SEC-DOCUMENT>0000950123-09-058464.txt : 20101005
<SEC-HEADER>0000950123-09-058464.hdr.sgml : 20101005
<ACCEPTANCE-DATETIME>20091105164619
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0000950123-09-058464
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20091105

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
</SEC-HEADER>
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<TYPE>CORRESP
<SEQUENCE>1
<FILENAME>filename1.htm
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<HEAD>
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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">November&nbsp;5, 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 style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">Re:</TD>
    <TD width="1%">&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 quarters ended March&nbsp;31, 2009 and June&nbsp;30, 2009</U><BR>
<U>File No.&nbsp;001-31817</U></TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Dear Ms.&nbsp;VanDoorn:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Reference is made to your follow-up letter dated October&nbsp;8, 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><BR>
<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">1.&nbsp;<U>Your Comment and Requested Clarification</U>: We have read and considered your response to
comment one. We note that you have concluded that the fair value of the renewal options are
insignificant based on the likelihood that such options would not be exercised. Please tell us the
GAAP literature you relied on to support your conclusion that the probability of the renewal option
being exercised should be utilized rather than the contractual terms of the leases in determining
the value to ascribe to below-market leases under SFAS 141. Your reference to FIN 21 addressing the
retention of the same lease accounting does not seem to negate the need to recognize the value of
below-market leases under SFAS 141.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<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>
November&nbsp;5, 2009<BR>
Page 2

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U>The Company&#146;s Response</U>: With respect to the Staff&#146;s request for reference to GAAP
literature in support of the Company&#146;s position, the Company follows the guidance set forth in SFAS
141, as supplemented by the literature in Statement of Financial Accounting Concept 7, &#147;Using Cash
Flow Information and Present Value in Accounting Measurements&#148; (&#147;Concept 7&#148;). SFAS 141 requires
that identifiable intangible assets (or liabilities) be recognized in a purchase price allocation
at fair value. As the value of an identifiable intangible asset (or liability) is premised on
future cash flows of the relevant asset, the Company in turn follows Concept 7 in estimating the
fair value of its identifiable intangible assets.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Summarizing its procedures to determine the fair values to ascribe to below-market leases, the
Company assesses the contractual terms of the leases in question, including the contractual renewal
rights under the respective lease arrangements, adjusted for risk/uncertainty of the exercise of
the renewal. The referenced literature provides that fair values should be estimated based on the
best information available, including the use of valuation techniques such as discounted cash flow
models. The Company applies appropriate risk premiums, consistent with fair values, incorporating
the &#147;risk of likelihood&#148; that renewal options will be exercised. As previously submitted, the
Company has determined such &#147;risk of likelihood&#148; to be low, as borne out by the Company&#146;s actual
experience. Implicit in this assessment is the Company&#146;s expectation that, in most instances,
future market lease rates for the properties in question, in the absence of major capital
improvements, will not be significantly greater than the contractually-fixed price at the scheduled
dates of exercise. It should be noted that the option rights are for specific properties in their
expected future condition at the end of their non-cancelable lease terms (i.e., at the scheduled
renewal dates); the properties in question are in-service assets with presumably diminishing values
based on the passage of time and use. The renewal options, although priced equivalent to the base
period rents (and below current market rents for the locations in their present condition), are, in
most instances, not expected to be exercised as the renewal options would not represent
below-market rents at their dates of exercise. In developing its assessment of the likelihood of
renewal, and therefore the projection of future market lease rates, the Company, in accordance with
SFAS 141 as supplemented by Concept 7, considered the previously-described factors that have led to
a high frequency of non-renewals by tenants with below-market lease arrangements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In conclusion, and in furtherance of its earlier responses, the Company respectfully submits that
the methodology employed by the Company in valuing the contractual terms of its leases indeed
follows accounting guidance/literature.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<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>
November&nbsp;5, 2009<BR>
Page 3

</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.&nbsp;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.&nbsp;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.&nbsp;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">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.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="48%">&nbsp;</TD>
</TR>
<TR>
    <TD colspan="3" align="left">Very truly yours,<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD colspan="3" style="border-bottom: 1px solid #000000" align="left">/s/ LEO S. ULLMAN
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD colspan="3" align="left">Leo S. Ullman&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD colspan="3" align="left">Chairman, Chief Executive Officer and President&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>



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