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Proc-Type: 2001,MIC-CLEAR
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<SEC-DOCUMENT>0000950123-10-068083.txt : 20101005
<SEC-HEADER>0000950123-10-068083.hdr.sgml : 20101005
<ACCEPTANCE-DATETIME>20100726162617
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0000950123-10-068083
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20100726

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>
<DOCUMENT>
<TYPE>CORRESP
<SEQUENCE>1
<FILENAME>filename1.htm
<TEXT>
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<HEAD>
<TITLE>corresp</TITLE>
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">July&nbsp;26, 2010
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Ms.&nbsp;Linda VanDoorn, Senior Assistant Chief Accountant<BR>
Ms.&nbsp;Louise Dorsey, Office of Chief Accountant<BR>
Ms.&nbsp;Yolanda Crittendon, Staff 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="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
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<TR valign="bottom">
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="95%">&nbsp;</TD>
</TR>
<TR></TR>
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<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Re:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><U>Cedar Shopping Centers, Inc.</U></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><U>Form&nbsp;10-K for the year ended December&nbsp;31, 2008</U></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><U>Form&nbsp;10-Q for the quarters ended March&nbsp;31, 2009, June&nbsp;30, 2009 and September&nbsp;30, 2009</U></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><U>File No.&nbsp;001-31817</U></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Dear Ms.&nbsp;VanDoorn, Ms.&nbsp;Dorsey and Ms.&nbsp;Crittendon:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Reference is made to the Staff&#146;s follow-up letter dated July&nbsp;15, 2010 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">To clarify our previous response, the Company&#146;s accounting policy for recognizing acquired
below-market leases is to record the entire fair value of the below-market leases at the respective
dates of acquisition. The amounts recorded as a liability at the dates of acquisition include
adjustments to reflect at fair value both the non-cancelable lease terms and any below-market
renewal options. The Company&#146;s accounting policy for amortizing the respective fair values of
below-market leases is to amortize the fair value adjustment so that level rental income is
recognized, thus representing market rental income during each lease period based on market
conditions at the dates of acquisition. Generally, the amortization period for below-market leases
is the remaining lease term (i.e., the remaining portion of the original lease term for accounting
purposes which, in most instances, is the non-cancelable lease term). However, if a portion of the
fair value adjustment relates to a renewal option that was not included in the original lease term,
and management has concluded that is likely that the renewal option will be exercised, the value
attributed to the renewal option would not be amortized over the original non-cancelable lease
term, but rather would be amortized over the renewal period. To reiterate, at the dates of
acquisition, the Company recognizes the values of below-market lease intangibles for both the
non-cancelable and renewal periods. The Company subsequently amortizes (a)&nbsp;the portion of the value
attributable to the non-cancelable term from the date of acquisition through the end of the
non-cancelable term, and (b)&nbsp;the portion of the value attributable to the renewal term from the end
of the non-cancelable term through the end of the renewal period.
</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">In respect of such treatment, and for purposes of additional clarity in reporting as to such
treatment, we propose to further modify our disclosure with respect to our accounting treatment of
such values as follows (deleted language crossed out and new language in bold):
</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="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;The value<B>s </B>of <B>acquired </B><strike>in-place</strike> above-market and below-market leases are <B>recorded </B>based on
the present values (using a discount rate<B>s </B>which reflects the risks associated with the
leases acquired) of the difference<B>s </B>between the contractual amounts to be received and
management&#146;s estimate of market lease rates, measured over the terms of the respective
leases that management deemed appropriate at the time of <B>the </B>acquisition<B>s</B>. Such valuations
include a consideration of the non-cancellable terms of the respective leases as well as any
applicable renewal period(s). The fair values associated with below-market rental renewal
options are determined based on the Company&#146;s experience and the relevant facts and
circumstances that existed at the time of <B>the </B>acquisition<B>s</B>. <strike>These are level 3 inputs within
the fair value hierarchy.</strike> The values of <strike>the</strike> above-market market leases <B>are amortized to
rental income over the terms of the respective non-cancelable leases periods. </B><strike>and</strike> <B>The portion
of the values of </B>below-market leases associated with the original <B>non-cancelable </B>lease terms
are amortized to rental income over the terms of the respective <B>non-cancelable </B>lease<strike>s</strike>
<B>periods</B>. The <B>portion of the </B>value<B>s </B>of <B>the leases associated with </B>below-market <strike>lease</strike> renewal
options <B>that are likely of exercise are </B><strike>is deferred until such time as the renewal option is
exercised and subsequently</strike> amortized <B>to rental income </B>over the <B>respective </B>corresponding
renewal period<B>s</B>. The value of other intangible assets (including leasing commissions, tenant
improvements, etc.) is amortized to expense over the applicable terms of the respective
leases. If a lease were to be terminated prior to its stated expiration or not renewed, all
unamortized amounts relating to that lease would be recognized in operations at that time.&#148;</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The above response is a clarification of the Company&#146;s accounting policy. Such policy was employed
for purposes of the Company&#146;s materiality analysis included in its response letter dated April&nbsp;23,
2010 and, as such, there is no effect on the analysis previously provided.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We would welcome your thoughts and comments and remain available to you for any further information
you may require.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 50%">Yours very truly,

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 50%">Leo S. Ullman

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">LSU:vg
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="95%">&nbsp;</TD>
</TR>
<TR></TR>
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<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">cc:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Lawrence E. Kreider, Jr. &#151; Chief Financial Officer at Cedar</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Gaspare Saitta, II &#151; Chief Accounting Officer at Cedar</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Jeffrey L. Goldberg &#151; Former Corporate Controller of the Company and Current Consultant to the Company</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">David Farhi &#151; CPA, Engagement Partner at Ernst &#038; Young on the Company&#146;s account as of 2009</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Barry Moss &#151; CPA, Independent Review Partner (Engagement Quality Reviewer) at Ernst &#038; Young in its New York Office</TD>
</TR>
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</TABLE>
</DIV>



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</DIV>




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