Glimcher acquired the remaining 60.7% interest in Polaris Mall LLC and the remaining 50% in Polaris Towne Center LLC from private investors for approximately $56.5 million. Based on current NOI, the purchase price represents an approximate capitalization rate of 8% for Polaris Fashion Place and 8.75% for Polaris Towne Center.
The acquisition was funded with a new $36.5-million loan secured by unused equity in Polaris Fashion Place, the issuance of 594,342 operating partnership units and approximately $6.6 million from the company's secured line of credit. The new loan matures in one year and bears interest at a rate of Libor plus 3% per annum. Glimcher says it intends to repay this loan during 2004 with proceeds from the sale of some of its community centers, the issuance of additional preferred or common equity, or both.
Both properties have ongoing long-term mortgage loans associated with them. The Polaris Fashion Place has a $148.7-million mortgage, which originated in 2003 and matures in 2013, bearing interest at a fixed rate of 5.24% with principal amortization over 30 years. The Polaris Towne Center has a $41.7-million mortgage, which originated in 2000 and matures in 2010, bearing interest at a fixed rate of 8.2% with principal amortization over 30 years.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.