Glimcher Sells Stake in Two Properties for $320M

New York-based Blackstone's purchase includes the assumption of $218 million in mortgage loans that are currently part of the properties. Glimcher will keep a 40% stake of the properties, which include Lloyd Center in Portland and WestShore Plaza in Tampa, FL.

The deal may be the sign of things to come. "We look forward to jointly evaluating additional mall acquisitions in the future," says Michael P. Glimcher, chairman of the Board and CEO of Glimcher. "We are excited about forming this new relationship with Blackstone, a highly-respected and strategic investor, which furthers our goal of raising capital through the partial sales of our Lloyd Center and WestShore properties."

The deal requires a $6.3-million security deposit, according to a Glimcher release. The deal is expected to close in December.

WestShore Plaza, which opened in 1967, was purchased by Glimcher for $153 million in 2003. The regional mall totals 1.1 million square feet with major tenants including Sears, Macy's, JCPenney and Saks Fifth Avenue as its anchors, along with an AMC multiplex theater.

According to earlier GlobeSt.com reports, Lloyd Center is an enclosed regional mall in the Portland, OR CBD with an ice rink. The mall totals 1.42 million square feet and is anchored by Macy's, Nordstrom and Sears, as well as Barnes & Noble, Marshall's, Ross Dress for Less and Lloyd Mall Cinemas. Glimcher acquired the property in September 1998 for $168 million, including $47.73 million for the land and $115.22 million for the improvements.

In July, during the Q2 investor earnings call Glimcher put these two properties, as well as the Polaris Towne Center in Columbus, OH, on the market. At the time the REIT saw a $1.3-million net loss for the quarter.

"This relationship will help Glimcher in the near-term while also positioning us to benefit from the economic recovery when it occurs," Glimcher says.