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Tuesday, 04 May 2004

Simon Pays $67Mln for Stakes in 2 Malls

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May 5, 2004

Simon Property Co. (NYSE:SPG) has increased its ownership stakes in the Bangor Mall in Bangor, Maine, and Montgomery Mall in North Wales, Pa.

The Indianapolis REIT now owns a 67.6 percent stake in Bangor Mall, up from 32.6 percent, and 54.4 percent of the Montgomery Mall, up from 23.1 percent. It paid a total of $67 million to increase its interests.

It acquired the interests from the California Public Employees' Retirement System and the State of Michigan Treasury. The two pension funds previously owned 50 percent of the Bangor property and 57.31 percent of the Montgomery Mall. The remainder of their stakes were purchased by other partners in the properties, including Kravco Investments LP, of which Simon owns 80 percent.

Simon funded its purchase of the interests by refinancing a $27 million mortgage on the Montgomery Mall with a $96 million mortgage that matures in 10 years and pays a 5.17 percent coupon. The mall's previous loan was set to mature in 2006 and paid a 7.48 percent coupon.

The Bangor Mall comprises 655,000 square feet and is anchored by Filene's, J.C. Penney and Sears. Dick's Sporting Goods is under construction, with an opening scheduled for November. The mall's non-anchors generate annual sales of about $370/sf and was 91 percent leased at the end of 2003.

Montgomery Mall is a 1.1 million-sf property in the Philadelphia suburbs that is anchored by J.C. Penney, Macy's, Sears and Strawbridge's. Inline sales for the mall are about $360/sf, and the occupancy rate was 92 percent at the close of last year.

Simon expects the acquisitions to provide an initial unleveraged yield of 8 percent.

Comments? E-mail Jill Ambroz, or call her at (267) 247-0112, Ext. 214.


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Additional Info

  • Syndicate to Realpoint: No
  • States: Maine, Pennsylvania
  • Sector: Retail
  • Subject: Mortgages/Financing (MOR), Property Acquisitions (ACQ), REITS -general (REITS)
  • Company: Sonnenblick-Eichner Co.
  • Valuation: Between $50 million and $100 million
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Data Digest







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




cppichart FP



CMBS 2.0 Spreads


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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