"This transaction is representative of the type of value investing that we are pursuing," Michael L. Ashner, chief executive officer of First Union, says in a statement. The $61.1 million equity required for this acquisition was provided in part from the proceeds of a $27 million loan from a third party as well as $33.6 million in net proceeds realized from the sale of the Park Plaza property in June 2004 which were being held by a qualified intermediary to enable First Union to acquire the properties in a 1031 exchange. The Little Rock, AR center sold for $77.5 million to CBL & Associates Properties Inc.

The $27 million loan bears interest at 8.55%, has a three-year term, subject to two one-year extensions and is secured by first mortgages on certain of the acquired properties as well as First Union's ownership interest in the single-purpose entities that hold the acquired properties. First Union also has the right to borrow an additional $26 million under the loan facility upon the satisfaction of certain conditions. First Union executives anticipate that, subject to the proposed additional financing closing, this acquisition will generate a current return on an $8 million net cash investment of 18.5%.