Glimcher Realty Trust sold the Great Mall of the Great Plains, a 782,499-square-foot regional mall in Olathe, Kan. to Great Olathe Center, LLC, a group of local investors, for $20.5 million. The company would not disclose the cap rate on the transaction, but indicated it was based on the land value of the asset and thus was not representative of the market. The proceeds were applied toward the $30.0 million mortgage on the property. The mortgage, secured in January 2006 featured an interest rate of 4.3 percent and a maturity date of January 12, 2009. Glimcher used its credit facility to repay the remaining balance on the loan. The mall was developed by Glimcher and Jordan Robert Perlmutter & Co. in the late 1990s. The Great Mall of the Great Plains was one of six properties the company identified as non-strategic assets in its plan to upgrade its portfolio. Five of the identified assets have now been sold. The remaining property, the 1-million-square-foot Eastland Mall in Charlotte, N.C. is expected to be sold by September, according to Glimcher’s agreement with its special servicers.
Other Notable Deals
Agree Realty Corp. extended the maturity date on its $55 million line of credit from November 2009 to November 2011. The terms of the facility remained the same, with an interest rate of 100 basis points over LIBOR or the prime rate. The company has no other debt maturities before 2015… CapLease, Inc. repurchased $8.7 million of its $75.0 million 7.5 percent convertible senior notes due in 2027 for approximately $3.3 million in cash, plus accrued interest. The purchase was made at an average discount of 62.6 percent to the face amount of the notes and a yield to maturity of more than 40.0 percent… Kite Realty Group Trust sold Silver Glen Crossing, a 138,265-square-foot shopping center in Chicago. The center was part of a deal that also included a Spring Mill Medical commercial asset and was worth approximately $48.5 million. Kite received approximately $23.6 million in net cash proceeds from the sale, which it used to pay its unsecured line of credit… General Growth Properties, Inc. settled a lawsuit with Caruso Affiliated Holdings LLC for $48.0 million. The lawsuit concerned Glendale Galleria, a 1.5-million-square-foot mall in Glendale, Calif. owned by a joint venture of GGP/Homart II. Its joint venture partner will not reimburse General Growth for any portion of the payment. General Growth will also reimburse $5.5 million to its joint venture partner in connection with the settlement. The lawsuit was brought by Caruso Affiliated in February 2004. It resulted in a judgment of $89.2 million in compensatory and punitive damage in December 2007… Marcus & Millichap Real Estate Investment Services negotiated the sale of Towne Park Plaza, a 201,906-square-foot shopping center in Albuquerque, N.M., from Towne Park Plaza PL to Towne Park Plaza LLC for $20 million… Marcus & Millichap Real Estate Investment Services negotiated the sale of a 10-property single-tenant net-leased portfolio for $9.9 million. The portfolio includes properties occupied by CVS, Rite Aid and Family Dollar and is located throughout Michigan, Ohio and New York.