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Lightstone Buys $456M Retail Outlet Interest

BALTIMORE-Lightstone Value Plus REIT is acquiring minority positions in 20 factory outlets managed by Prime Outlets from Arbor Mortgage REIT.

By Erika Morphy | Updated on July 02, 2008

BALTIMORE-Lakewood, NJ-based Lightstone Value Plus REIT is taking a minority interest position in 20 factory outlets as well as receiving rights to four development projects in a $456-million deal. The REIT acquired the package from Arbor Mortgage, an affiliate of Arbor Mortgage REIT–a structure that puts Lightstone REIT on the same co-investor footing with Lightstone Group in the deal. Lightstone REIT did not return a call to GlobeSt.com.

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%.

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