PREIT Divests Two Shopping Centers for $87.3M
Pennsylvania Real Estate Investment Trust (NYSE: PEI) has sold two retail power centers in conjunction with its strategic plan to dispose of non-core properties in the hopes of strengthening its balance sheet by reducing debt.
In two separate transactions, the REIT sold Christiana Center in Newark, DE and the Commons at Magnolia in Florence, SC for an aggregate sales price of $87.3 million, representing a blended CAP rate of 6.8% and net gains totaling nearly $45.4 million.
The Kroenke Group acquired Christiana Center at 100-900 Center Blvd. in Newark, DE for $75 million, or about $245 per square foot.
The 306,140-square-foot retail center was built in 1978 on 72 acres in the South New Castle County submarket of Philadelphia. The asset is anchored by a free-standing Costco, Dick’s Sporting Goods, HHGregg, Michael’s, Pier1, and Petco.
In connection with this sale, the buyer assumed the $49.2 million mortgage secured by the center.
Gerard Mason and Arthur Milston with Savills LLC represented the seller in this deal.
In a separate transaction, Chase Properties Ltd. acquired The Commons at Magnolia, located at 2791-2895 David H McLeod Blvd. in Florence, SC for $12.3 million, or about $119 per square foot.
The 103,683-square-foot shopping center was built in 1991 on 7.9 acres in Florence County. It is anchored by Bed Bath & Beyond, PetSmart and Rack Room Shoes.
PREIT intends to use the proceeds from these two sales to make further reductions in debt and for general corporate purposes. The group has already reduced its debt by $359 million in 2013, primarily through the disposition of non-core assets and the successful offering of common equity, according to Joseph F. Coradino, CEO of PREIT.
Courtesy of the CoStar Group. Read the full article here: