OAK BROOK, ILL.—Retail Properties of America Inc. (RPAI), based in Oakbrook, Ill., has sold 13 former Mervyns locations in California for approximately $100.4 million. Proceeds from the sale were used to repay the outstanding loan on the 23-asset Mervyns portfolio.
“This sale is an important milestone in our strategic plan and demonstrates our ongoing commitment to focus on our three major initiatives for 2012, which include strengthening the portfolio, lowering our risk profile, and creating long-term value for our shareholders,” stated Steve Grimes, president and chief executive officer for RPAI.
Taken together, the 13 assets represent approximately 1 million sq. ft. and are currently 99 percent leased. The portfolio includes four Hobby Lobby locations, four Kohl’s locations and five Burlington Coat Factory locations.
“We anticipate closing on the sale of the majority of the remaining former Mervyns locations by the end of the year,” said Shane Garrison, executive vice president and chief operating officer for RPAI.
