Prime Retail to Sell Puerto Rico Property

BALTIMORE-Retail outlet center REIT Prime Retail Inc. has committed to selling its Prime Outlets of Puerto Rico property for approximately $36.5 million. Part of the net proceeds from the deal will be used to cover the company’s principle-prepayment requirement of $12 million for December 2002 on its mezzanine loan, which has an outstanding balance of $31.1 million.

Prime Retail officials announced earlier this month that it had modified the terms of the loan with lenders FRIT PRT Lending LLC and Greenwich Capital Financial Products Inc. The deal, which also includes a non-recourse mortgage with an outstanding balance of just over $19 million, is scheduled to close before the end of the fourth quarter. Prime Retail will likely stay involved with the property through its management, marketing and leasing activity for profit.