The shopping centers have a total of 2.5 million sf, and all of them are located in California, are more than 96% leased and are anchored by a grocery store. Under the deal, Burnham Pacific will receive $145.5 million in cash and assume a loan with a balance of about $132 million.
"This transaction represents a great opportunity for us to acquire a high-quality, supermarket-anchored portfolio in exceptional markets," says Drew Alexander, Weingarten president/CEO.
Alexander notes that Weingarten estimates a return on investment in excess of 10% on these assets during 2001, "with additional upside through contractual rent steps and market increases as leases mature."
"We are pleased to have reached an agreement for the sale of the 19 properties," says Scott C. Verges, Burnham president/CEO. "The proposed transaction demonstrates our commitment to the successful liquidation of the company in an orderly manner."
The deal is expected to close March 30.
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