Cabot To Spend $116M in Mall Buy, Rebuild

ASHTABULA, OH-Cabot Investment Properties has taken out a $92.6 million loan to cover the purchase and redevelopment of three mall properties in Indiana and Ohio. The company bought the 816,605-sf Ashtabula Mall here, the 461,111-sf North Park Mall in Marion, IN and the 426,785-sf Southland Mall. The acquisition and a redevelopment plan will end up costing about $115.7 million.

CB Richard Ellis’ Capital Markets managing director Keith Braddish and VP Jason Gaccione secured the 10-year, non-recourse, first mortgage loans that are structured on 30-year amortization schedules with three years of interest-only payments. “Cabot will be able to take advantage of the stable population base in this region, while refocusing leasing efforts to cater to the younger generation and families, which in turn will drive foot traffic and releasing momentum,” Gaccione said in a statement. He said the Royal Bank of Canada provided 80% of Cabot’s total cost, inclusive of acquisition and redevelopment costs.