The purchases involve $222 million in equity from the 50/50 joint venture. A $75-million mortgage on Silver City Galleria in Taunton, MA remains in place while new non-recourse mortgages for $337 million allow for the acquisition of Galleria at Tyler in Riverside, CA and Kenwood Towne Centre in Cincinnati.
General Growth says sales now average about $408 per sf at the newly-acquired enclosed malls, with occupancy averaging about 86%. The joint venture expects to see $55 million of net operating income over the next twelve months, which works out to an overall capitalization rate of 8.7%.
"All four of these regional shopping centers produce strong current cash flow," says General Growth chief executive officer John Bucksbaum in a statement.
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