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Monday, 27 September 2004

PREIT Completes $111Mln Sale of Malls to Lightstone

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September 28, 2004

Pennsylvania Real Estate Investment Trust (NYSE:PEI) has completed its $110.7 million sale of five shopping malls to Lightstone Real Estate Partners.

PREIT said it would use the $108.5 million of net proceeds from the sale to pay down its credit line to $112 million.

The company had assumed the five properties, which total 2.7 million square feet, in its 2003 acquisition of Crown American Realty Trust. The five were among six in Crown's portfolio that PREIT considered non-core properties and were held for sale.

Granite Partners advised PREIT in the sale.

Lightstone, a Lakewood, N.J., real estate company, financed its acquisition with debt from Wachovia Securities. The properties will be managed by Prime Retail, a Baltimore REIT that Lightstone acquired late last year for $115.5 million in cash and the assumption of $510 million of debt.

The five malls it purchased are:

– Bradley Square Mall, a 406,522-sf property in Cleveland, Tenn., that is 88 percent leased and anchored by Sears, JCPenney, Proffitt's and Kmart.
– Martinsburg Mall, a 566,400-sf property in Martinsburg, W.Va., that is 94 percent leased and anchored by JCPenney, Sears, Wal-Mart and Bon-Ton.
– Mount Berry Square Mall, a 478,679-sf property in Rome, Ga., that is 88.3 percent leased and anchored by JCPenney, Belk Rhodes, Sears and Proffitt's.
– Shenango Valley Mall, a 513,483-sf property in Hermitage, Pa., that is 91.5 percent leased and anchored by JCPenney, Sears and Kaufmann's.
– West Manchester Mall in York, Pa., with 704,148 sf that is 90 percent leased and anchored by Bon-Ton, Value City, Wal-Mart and Hecht's.

The properties' non-anchor stores generated $243/sf in annual sales, which PREIT said was $80/sf less than the average for its other malls.

The Martinsburg and West Manchester malls were part of the collateral pool for a $439.9 million mortgage that had been securitized through GE Capital Mall Finance Corp., 1998-1. The two properties are being replaced by Northeast Tower Center, a 274,400-sf mall in Philadelphia, and Jacksonville Mall, a 474,400-sf property in Jacksonville, N.C.

PREIT originally had six Crown American properties on its non-core list. With its sale, it has sold all but one, the Schuylkill Mall, a 727,091-sf property in Frackville, Pa. The property remains on its "held-for-sale list." It is anchored by Kmart, Sears and Bon-Ton and is 78 percent leased.


Comments? E-mail Orest Mandzy, or call him at (267) 247-0112, Ext. 211.


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“The Weekly” is Commercial Real Estate Direct’s PDF newsletter, sent to subscribers every Friday morning. With over 100 news stories published on Commercial Real Estate Direct each week, “The Weekly” features the top stories in commercial real estate that industry participants need to know first. “The Weekly” also contains:

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Additional Info

  • Syndicate to Realpoint: No
  • Sector: Retail
  • Subject: Commercial MBS (CMBS), Property Acquisitions (ACQ), REITS -general (REITS)
  • Deal Name: GE Capital Mall Finance Corp, Series 1998-1
  • Company: Cushman Realty Corp., Pierce, Fenner & Smith, Prison Realty Corp.
  • Valuation: Between $100 million and $150 million
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Data Digest

 

CMBS DELINQUENCY VOLUME

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CMBS SPECIAL SERVICING VOLUME

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Top Bookrunners Domestic, Private-Label CMBS - 2017
Investment Bank #Deals Vol$mln MktShr%
Goldman Sachs 17.59 11,819.34 13.68
JPMorgan Securities 14.52 10,968.11 12.70
Citigroup 12.04 10,012.71 11.59
Wells Fargo Securities 14.02 9,936.06 11.50
Deutsche Bank 12.55 9,879.74 11.44

 

RCA CPPI

 

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Top CMBS Loan Contributors - 2017
Lender #Loans Vol$mln MktShr%
Goldman Sachs 146.89 11,719.34 13.63
JPMorgan Chase Bank 117.68 10,114.14 11.76
Deutsche Bank 198.48 9,689.97 11.27
Morgan Stanley 166.18 8,539.78 9.93
Citigroup 199.05 8,088.24 9.41

 

 

 

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