Needless to say, PREIT gains as well with the buy. The purchase adds some 1.1 million sf of retail space to a portfolio that previously encompassed 9.8 million sf of retail through the eastern states. (In addition, the firm is also in the midst of some three million sf of retail development in six different properties. The trust also owns some 7,242 apartment units.)

The purchase price was cobbled together from a $48-million mortgage provided by CS First Boston and Column Financial plus $175 million in credit. The 10-year mortgage has a 7.4% interest rate; the cap rate on the purchase price is 11.1%. The mall, which boasted $123 million in '01 revenues, is anchored by Kaufmann's, JCPenney and Sears.

Despite the mall's 92% occupancy rate, the new owner isn't above trading up with some of its existing tenants. According to one spokesperson, "We're always looking for upside. We've managed the property since 1990, and we were responsible for adding JC Penney. So, we're very aware of the opportunities to retenant."

She says the stress will not be on bringing in more higher scale retailers as much as fleshing out the mix appropriate for the local area. Nevertheless, depending on the size of the space, target rents at Beaver Valley--now between $26 and $28 for 2,500-sf tenants-- will hover close to $30 per foot. Jerry Nathan of New York City-based Granite Partners spoke for CalPers; PAREIT represented itself.