Lightstone Finishes $388M Refi

"These three centers have performed exceptionally well during our partial ownership," says Angela Mirizzi-Olsen, Lightstone's chief investment officer, who was responsible for the transaction. The financing was provided by Wachovia, which was represented by managing director Chad Johnson.

Lightstone subsidiary Prime Retail Inc. had been operating the three properties since 2004, and will continue to do so post-acquisition. "We believe that the strong tenant mix at these centers and the opportunity for additional tenants and the potential for increased rent will add significant value to our portfolio," says Prime Retail president Bob Brvenik, who was involved in closing the transaction.

The largest of the three properties is Prime Outlets-Birch Run in Michigan, which with 170 manufacturers' outlets and approximately 700,000 sf is described as that state's largest outlet center. Tenants include Coach, Polo Ralph Lauren and Michigan's only Pottery Barn Furniture Outlet.

Prime Outlets-Hagerstown, meanwhile, totals nearly 486,000 sf, with a tenant roster that includes Bose, Banana Republic, Coach, Nike, Under Armour, Calvin Klein, Polo Ralph Lauren and Ann Taylor. And the 324,000-sf Prime Outlets-Williamsburg has a tenant roster that includes Coach, Michael Kors, Banana Republic, Brooks Brothers, Nike and Gymboree. Combined, the three properties are approximately 95% leased, according to Brvenik. "In fact, the Williamsburg property is among our highest grossing centers in sales per sf, and is continuously ranked among the top outlet centers in the country," he says.

The latest refinancing transaction follows an $800-million deal covering 10 outlet centers bearing the Prime Outlets brand in several states, completed just a few weeks ago. As reported by GlobeSt.com, the proceeds of that transaction, estimated at $631 million, are being used to upgrade and expand the 10 properties. Lightstone's Mirizzi-Olsen and Wachovia's Johnson similarly worked out the arrangements of the earlier transaction.

In other Lightstone news, its affiliate, the Lightstone Value Plus REIT closed on the $26-million acquisition of the 256,000-sf Belz Outlets center in St. Augustine, FL. In May 2005, Lightstone acquired the 700,000-sf Belz Factory Outlet World and the 200,000-sf Belz Designer Outlet Center in south Orlando, as GlobeSt.com previously reported.