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TUCSON-Feldman Mall Properties Inc. has struck a $104-million deal to sell part of its 700,000-sf Foothills Mall to Kimco Realty Corp. The plan hinges on the JV's ability to secure first-mortgage financing.

Feldman will yield about $39 million if the deal for 7401 N. La Cholla Blvd. closes as planned in May. The Great Neck, NY-based Feldman will hold onto a $7.2-million equity interest as the managing partner and continue to lease and manage plus oversee any additional construction on the asset. Kimco's will invest $25 million into the buy-in plan, according to a press release issued today about the deal.

Feldman, which acquired the 1983-constructed Foothills Mall in 2002, invested $65 million in the purchase and renovation. Occupancy is 91.4%, with the renovation now 90% complete. Its anchor tenants include Barnes & Noble, a Loews 15-screen theater, Saks Off 5th, Linens 'n Things, Ross Dress for Less and Nike Factory Outlet.

"We have confidence in FMP's ability to add value to the mall as new tenants are added to the already strong rent roll in place," Dave Henry, vice chairman and chief investment officer for the New Hyde Park, NY-based Kimco, says in a press release. "We also look forward to continuing our strategic relationship with FMP and to the possibility of future transactions with FMP."

Instant Insights /

REIT Rolls 700,000-SF Foothills Mall Into JV for $104M

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