O'Connor Capital and Washington Prime completed their first JV in 2015, for the ownership and operation of five malls totaling 4.5 million square feet, and related out-parcels. At acquisition, the properties were valued at approximately $1.625 billion. They included: Scottsdale Quarter in Scottsdale, AZ; Pearlridge Center in Aiea, HI; Town Center Plaza, which includes Town Center Plaza and the adjacent Town Center Crossing, in Leawood, KS; Polaris Fashion Place in Columbus, OH; and the Mall at Johnson City in Johnson City, TN.

COLUMBUS, OH—Washington Prime Group Inc. said Monday afternoon it had completed its second joint venture with an affiliate of New York City-based O'Connor Capital Partners. First announced this past November, the JV on seven open-air retail centers is valued at about $600 million, less the mortgage debt on the properties.

The O'Connor affiliate, O'Connor Mall Partners, is taking a 49% stake in the JV, while Washington Prime retains a 51% interest and will continue to lease and manage the properties. Included in the portfolio, which totals two million square feet, are Arbor Hills in Ann Arbor, MI; Classen Curve/Nichols Hills Plaza/The Triangle at Classen Curve in Oklahoma City, OK; Palms Crossing in McAllen TX: and three properties in Austin, TX: Gateway Center, The Arboretum and the Shops at Arbor Walk. A seventh property, Malibu Lumber Yard in Malibu, CA, is expected to be transferred to the JV later in the second quarter.

Washington Prime received approximately $340 million of proceeds from the formation of the second JV and new mortgage debt. Proceeds will be used to reduce the Columbus, OH-based REIT's outstanding debt and for general corporate purposes. In addition, the company will receive approximately $12.5 million upon transfer of Malibu Lumber Yard.

“Building on our partnership with Washington Prime Group by concluding this transaction fits well with our investment strategy,” says William Q. O'Connor, president and CEO of O'Connor Capital. “These are high-quality, open-air retail properties, all located in robust markets and leased to prime tenants, with a variety of amenities that provide what is essentially a destination shopping experience.” The tenant roster for the portfolio includes Whole Foods, Crate & Barrel, DSW, Ulta, Lululemon, Nordstrom Rack, Cheesecake Factory, Anthropologie and Trader Joe's.

O'Connor Capital and Washington Prime completed their first JV in 2015, for the ownership and operation of five malls totaling 4.5 million square feet, and related out-parcels. At acquisition, the properties were valued at approximately $1.625 billion. They included: Scottsdale Quarter in Scottsdale, AZ; Pearlridge Center in Aiea, HI; Town Center Plaza, which includes Town Center Plaza and the adjacent Town Center Crossing, in Leawood, KS; Polaris Fashion Place in Columbus, OH; and the Mall at Johnson City in Johnson City, TN.