"It's a strong mall in a growth market," says Jonathan Weller, PREIT's vice chairman. "The acquisition solidifies our position in our core geographic market."
Besides the ownership link through principals of Cumberland Mall Associates, PREIT has another existing connection to the property: PREIT-Rubin Inc. has managed and leased the property for the past seven years. Cumberland Mall is anchored by Boscov's, JCPenney and Value City. Its in-line retail space, currently 98.8% occupied, has 62 tenants including American Eagle Outfitters, Gap, Old Navy and Victoria's Secret. The in-line sales volume for the past 12 months was $328 per sf.
"With the strong tenant mix and potential for increased rent from this mall, we expect an improved return on this investment," Weller says. "We underwrote the acquisition to generate an unleveraged return of approximately 10.2% on cost based on anticipated operating income for 2005."
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.