General Growth Properties, a shopping center owner, developer and manager, acquired 100% interest in the mall from an institutional joint venture whose name was not released. General Growth already managed Southland through its third party management subsidiary.
The purchase was financed with about $24 million of cash and a new five-year $65 million mortgage loan that bears interest at LIBOR plus 75 basis points. The company expects the property to produce approximately $9 million of net operating income in calendar year 2003.
Southland Mall was developed in 1964, expanded in 1973, and extensively renovated in 1984. Once plagued by graffiti, trash and nearby overgrowth, the mall recently underwent a major city-sponsored overhaul to turn it, and the surrounding area, into a desirable and safe place to live and shop.
The property, located at One Southland Mall Dr., consists of more than 1.3 million-sf of space. The mall's 412,000-sf of retail space is now approximately 87% occupied and produces sales of approximately $335 per sf.
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