To finance the transaction, Lightstone Value Plus REIT is advancing $91.2 million in cash and shares of its operating partnership, with an additional pro rata share of existing mortgage debt that has an interest rate of 5.5%. The interest in the properties, which are located in 15 states, varies from 22.5% to 25%. Retailer Prime Outlets manages the centers, which total nearly 7.3-million sf and have an occupancy rate of 93.4%.
The acquisition is expected to deliver a steady cash flow to Lightstone, Stephen Hamrick, president of Lightstone Value Plus REIT, says in a prepared statement. "We're fortunate to have the opportunity to invest in a niche industry leader with a portfolio of nationally recognized factory outlet shopping centers," he says, adding that "Prime's successful execution on the opportunities within its development pipeline should create attractive future investment opportunities for the REIT."
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
