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GRAND RAPIDS, MI-As GlobeSt.com reported yesterday, Philadelphia-based Pennsylvania Real Estate Investment Trust has acquired the 1.1-million-sf Woodland Mall. Now, PREIT officials are filling in the details. Funding the $177.4 million purchase came with the help of two promissory notes to the seller at $94.4 million, at an average interest rate of 6.85%, and $83 million in unsecured credit.

"This is our first acquisition in Grand Rapids, and also our first in the state of Michigan," comments Jonathan Weller, vice chairman of the REIT. Weller tells GlobeSt.com that the property will be a strong addition to its portfolio of retail properties throughout the Eastern Seaboard and points west. "This is a geographic expansion, as we look to areas outside the mid-Atlantic."

The Grand Rapids market was attractive to the REIT for many reasons, Weller continues. For one thing, the retail center carries a strong roster of tenants and strong sales per sf.

"We see good trends in terms of population and job growth," Weller says. "We see the health care industry expanding rapidly in this location, with a lot of new construction, specialized hospital care and other facilities, with the prospect of Michigan State opening a medical school in Grand Rapids." All of which leads to a strong base for growth of the property, he adds.

PREIT has no immediate plans for upgrades, Weller continues, however, "we plan to do some selective re-merchandising to bring new tenants to the market."

Though impressed with the area, Weller notes that the company isn't necessarily looking locally for more properties. "We're looking for other attractive acquisitions in areas that are strategically beneficial to our portfolio and company," he says.

Instant Insights /

GlobeSt.com UPDATE: PREIT Enters Market With Woodland Mall Buy

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