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Pennsylvania REIT Picks up Mall for $61M

NEW YORK CITY-The acquisition swells the REIT's inventory by an additional 1.1 million sf. CalPers was the former owner. The acquisition is located roughly 30 miles north of Pittsburgh.

By John Salustri | Updated on April 10, 2002

NEW YORK CITY-Don’t say retail doesn’t pay. CalPers has just collected $61.3 million on its Beaver Valley Mall in a sale to Pennsylvania Real Estate Investment Trust, a Philadelphia-based REIT. The asset is roughly 30 miles north of Pittsburgh.

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.

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