Wal-Mart is no longer a lead tenant for Columbus, Ohio-based REIT Glimcher Realty Trust. In a push to refocus its strategy on regional malls, Glimcher sold 27 of its community centers in 2002.
Many of those centers were successful Wal-Mart-anchored properties. But they were not a part of the companyâ€™s new plan. For third quarter 2002, Wal-Mart generated 4.1 percent of Glimcherâ€™s annualized rent with Limited slightly behind at 3.8 percent.
Glimcher will now generate 86 percent of base rents from its regional malls with only 14 percent of base rents coming from 50 community centers, according to McDonald Investments analyst Richard Moore. Glimcherâ€™s edited portfolio will include 25.7 million sq. ft. and 22 malls. The REIT is holding on to community centers and freestanding properties located near its malls.
Completed in several transactions, the total divestiture brought in $275 million that Glimcher will use to pay off a mortgage and reduce its line of credit balance, Moore says. Columbus-based U.S. Property Group scooped up 22 of the centers for $200 million.