The $320-million purchase includes the assumption of about $215 million in mortgage loans currently in place on the properties. The transaction generated net proceeds of about $60 million to Glimcher after considering debt assumption fees and ordinary closing costs. These proceeds were applied against outstanding borrowing under Glimcher's credit facility, and, accordingly, the current outstanding balance on the credit facility has been reduced to about $232 million.

"The sale allows us to pay down our line, while continuing our strategy of repositioning our balance sheet," says Mark Yale, the Glimcher CFO. "We also get to continue to manage the assets, while forming an affiliation with the respected Blackstone." He tells GlobeSt.com that not only does Glimcher not plan on selling any more properties, the new joint venture will likely look to buy other assets in the future.

He said the reason for this deal's delay was that the debt that was assumed was CMBS debt, and it had to go through special servicers and rating agencies. "Maybe it was a little optimistic for us to announce December. Everything is taking longer than it should, and we had to go through several steps," Yale says.

The two malls are some of the best of Glimcher's 27 properties, Yale said, both with higher than 93% occupancy in a tough, but returning, economy. "In retail, compared to a year ago, there's been a dramatic improvement. Last year we were talking about closing stores and rent relief, and now we're looking at getting new stores open. Tenants are still cautious , but they're seeing positive signs and had a profitable holiday season. We're waiting to see a sense of urgency by tenants to open new stores," he says.