COLUMBUS, OH-Developers Diversified Realty and Glimcher Realty Trust, both based in Ohio, have come to a neighbor’s agreement – they’ll swap centers. Beachwood, OH-based DDR is selling Town Center Plaza in Kansas City, KS to Glimcher, which in turn is selling its Polaris Towne Center here to DDR, with total money crossing hands at about $219 million.
Glimcher is releasing its 700,000-square-foot Polaris center, anchored by Target, Lowe’s, Kroger, Best Buy and TJ Maxx, for $80 million. The property is known as a big box mall, and Glimcher CFO Mark Yale tells GlobeSt.com that his firm is looking to boost its image. “We want to upgrade our mall portfolio,” Yale says about the REIT.
So, Glimcher is buying the 650,000-square-foot Town Center Plaza, an open-air mall with anchors such as Macy’s, Dick’s Sporting Goods, Pottery Barn and Anthropologie, for $139 million. The property has high sales productivity of more than $400 per square foot, and 95% occupancy.
In a statement, DDR President and CEO Daniel Hurwitz said that his firm wants to simplify the company’s portfolio, and “focus on what we do best,” he said. The company is an owner and manager of 546 centers in 41 states, Puerto Rico and Brazil.
Yale says the deal helps out the strategy of both firms. “The product type at Town Center, that’s where we want our business to be,” he says. “The big box inline stores, that’s DDR’s core.”
The Polaris deal also helps DDR eliminate a previous competitor in the Columbus market. The company will now have seven assets in the Columbus area, and improves its position as the dominant power center owner. Yale says Glimcher used to own centers in the market around Town Center, but the purchase will mean a re-entry to Kansas City, KS for the company.
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