First Union Takes 16 Properties in $92M Sale

BOSTON-First Union Real Estate Equity and Mortgage Investments, a publicly traded REIT based here, completed the acquisition of 16 triple-net leased properties containing approximately 2.5 million gross sf for about $91.6 million from Finova Capital Corp. The transaction amount is inclusive of the assumption of approximately $31.6 million of existing first mortgage debt on certain of the properties.

“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.