To finance the transaction, Lightstone Value Plus REIT isadvancing $91.2 million in cash and shares of its operatingpartnership, with an additional pro rata share of existing mortgagedebt that has an interest rate of 5.5%. The interest in theproperties, which are located in 15 states, varies from 22.5% to25%. Retailer Prime Outlets manages the centers, which total nearly7.3-million sf and have an occupancy rate of 93.4%.
The acquisition is expected to deliver a steady cash flow toLightstone, Stephen Hamrick, president of Lightstone Value PlusREIT, says in a prepared statement. "We're fortunate to have theopportunity to invest in a niche industry leader with a portfolioof nationally recognized factory outlet shopping centers," he says,adding that "Prime's successful execution on the opportunitieswithin its development pipeline should create attractive futureinvestment opportunities for the REIT."
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
