HONOLULU-Retail REIT, Glimcher Realty Trust has entered into an agreement along with an affiliate of Blackstone Real Estate Advisors to purchase Pearlridge Center in Honolulu for $245 million. The transaction is anticipated to close in the fourth quarter of 2010.
Pearlridge will be acquired by a joint venture that is owned 80% by an affiliate of Blackstone Real Estate Advisors and 20% by an affiliate of Glimcher. Glimcher will lease and manage the property.
Pearlridge is the second largest mall in Hawaii with a total leasable area of more than 1 million square feet. Pearlridge was built in 1972 and underwent extensive renovations in 1995 and 1996. Pearlridge is located in the community of Aiea, in the Honolulu MSA. The Property has in-line tenant sales of approximately $500 per square foot and an occupancy rate of 99%.
The purchase price of $245 million will be funded by proceeds from a new mortgage loan of approximately $175 million that will be obtained at closing and equity contributions by the joint venture partners. The equity contributions will be funded proportionately by the joint venture partners based upon their respective ownership interests in the venture. Glimcher will fund its required portion of the equity contribution through available capacity under its line of credit. The transaction required the venture to post a $10 million earnest money deposit, which is nonrefundable provided certain estoppels and consents are received and certain other customary conditions are satisfied. The earnest money deposit has been funded by the partners proportionately based upon their respective ownership interests.
“Pearlridge Center is a highly-productive and well occupied mall that fits perfectly within our strategy of upgrading the quality of our real estate portfolio,” says Michael Glimcher, chairman and CEO. “We are excited to expand our strategic relationship with the Blackstone Group through this investment,” Glimcher adds.
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