The sellers of both the mall and the adjacent site are partnerships in which Cedar CEO Leo Ullman is a limited partner. The partnerships had owned Shore Mall for nearly two decades and Cedar Shopping Centers managed the property during that period.
The purchase price is being funded by assumption of nearly $31 million in first mortgage financing at 7.01%, due August 2008, according to Tom O'Keeffe, Cedar's CFO. The remainder of the purchase price is being funded by the company's revolving credit facility. Cedar is also taking on certain installment payments totaling $3.1 million, payable through 2009 to the holder of preferred partnership interests.
Shore Mall is anchored by a 167,299-sf Boscov's department store, which will be expanded by another 12,400 sf later this year. Other anchors include a 144,000-sf Value City store and an 85,000-sf Burlington Coat Factory; all three recently extended their leases. Cedar officials say the adjacent site, its sale pending, has a build-out capability of another 200,000 sf of retail.
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