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SPRINGFIELD, PA-In a 50/50 joint venture, Philadelphia-based Pennsylvania Real Estate Investment Trust and the Kravco Simon Investments' affiliate of Indianapolis-based Simon Property Group completed the previously announced acquisition of Springfield Mall for approximately $103.5 million, or just over $175 per sf. The same JV also owns Lehigh Valley Mall and Whitehall Mall near Allentown.

To finance part of this acquisition, the buyers obtained a $76.5-million mortgage on the property at an interest rate of 1.1% over Libor, which may increase to 1.275% over Libor under certain unspecified circumstances. The mortgage loan is for a two-year term with three one-year extension options. The JV underwrote the acquisition to generate an unleveraged return of approximately 7.1% on the purchase price and estimated closing costs, based on anticipated 2006 operating income, according to a PREIT statement.

In September, at the time the planned acquisition was announced, Nurit Yaron, PREIT's VP of investor relations, told GlobeSt.com the 590,000-sf property was built in 1974. It is approximately 10 miles southwest of Philadelphia in an area in which PREIT has two other small retail properties.

Macy's and Strawbridge's, which own their buildings, are the current anchors, and Federated Department Stores has announced plans to close the Strawbridge's unit in early 2006. As of Sept. 30, in-line occupancy was 95% and sales per sf for the trailing 12 months was approximately $370. Among the more than 70 in-line tenants are Ann Taylor Loft, Build-A-Bear, Carrabba's, Charlotte Ruse, Gap/GapKids, Ruby Tuesday and Yankee Candle.

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GlobeSt.com UPDATE: PREIT/Simon JV Completes $104M Springfield Mall Buy

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