Glimcher Realty Pays $30M for Eastland Mall

COLUMBUS, OH –Glimcher Realty Trust has completed its acquisition of the 940,000-sf Eastland Mall here from Columbus East Joint Venture, an Ohio general partnership. Locally based Glimcher paid $29.65 million for the property, which is 78% leased and about to gain a new 120,000-sf Kauffman’s department store.

The purchase was funded with a $24-million, three-year bank loan that bears interest at a rate of LIBOR plus 200 basis points, and approximately $5 million of borrowings on the Glimcher’s line of credit. Glimcher says it also may borrow up to an additional $12 million during the life of the loan for the addition of said new anchor and other improvements to the mall.

The purchase price represents a 15% cap rate based on estimated in-place net operating income. After the Kauffmann’s addition, the lease up of the additional small shop GLA and various capital improvements to the existing mall, Glimcher expects stabilized returns in the 12% to 13% range.