General Growth Properties (GGP), the nation’s second-largest mall REIT, today acquired Pecanland Mall in Monroe, La., for about $72 million.
GGP purchased 100% of the enclosed mall from Pecanland Mall Holdings LLC. The purchase price included about $22 million in cash which the company had on hand and the assumption of a $50 million existing loan that bears interest at 6.5% and matures in January of 2005.
The property is expected to produce approximately $7.4 million of net operating income during the next 12 months.
Pecanland Mall opened in 1982, and includes 984,000 sq. ft. anchored by Dillard's, Sears, JCPenney, McRae's, Mervyns and a 10-screen cinema. In-line specialty retail space totals 354,000 sq. ft. The center is currently 94% occupied and produces sales of approximately $301 per square foot.
"Pecanland represents another excellent opportunity to create value in real estate," said John Bucksbaum, GGP’s CEO. "This property is located in the fast growing region of Northeast Louisiana. The growth of the area will be a catalyst for increased customer sales and traffic. Through enhanced management and upgrading of the retail mix we will have a positive impact on sales, profitability and long-term positioning of the center. Synergy will also be created in the areas of management, marketing, leasing and business development with Mall St. Vincent and Pierre Bossier Mall, two General Growth centers located in Shreveport, La."