Glimcher Sells 13 Properties for $106M

PHILADELPHIA-Columbus, OH-based Glimcher Realty Trust has closed the sale of 13 properties to a group of unidentified private investors for approximately $106 million. The sale represents the initial closing on a sale of a 22-asset portfolio, announced in June.

The purchase price includes $76.8 million in cash and the assumption of four existing mortgages with a total outstanding balance of $29.2 million. The cash proceeds are being used to repay a $50-million mortgage that is scheduled to mature on October 26 and to pay down $19.2 million on Glimcher’s floating rate bridge loan facility. The balance of the funds, after payment of costs related to the closing, is being used to reduce outstanding borrowings on Glimcher’s line of credit.

“This $106-million sale is a major step forward in execution of our plan to lowerthe company’s leverage and focus on regional mall assets,” says president Michael P. Glimcher in a statement. “The closing of this transaction has reduced our debt to a market capitalization ratio below 60% as of Aug. 31 and completes our refinancing requirements for 2002.”

The properties in the sale total approximately 2.1 million sf. Nine of them are in Ohio. They include Delaware Community Plaza, a 153,451-sf center in Delaware, OH; East Pointe Plaza, a 145,111-sf center in Marysville, OH; Hunter’s Ridge, 175,807 sf in Gahanna, OH; Lowe’s Columbus, 125,357 sf in Columbus; Mt. Vernon Plaza, 61,718 sf in Mt. Vernon, OH; River Valley Plaza, 223,865 sf in Lancaster, OH; Springfield Commons/Toys ‘R Us, 213,017 sf and Wal-Mart Plaza, 200,503 sf, both in Springfield, OH.

Others are in Glasgow, KY; Galax, VA; Knoxville, TN, and Altoona, PA. Of the properties, 11 are community centers and two are single-tenant assets.

Glimcher’s contract for the sale of nine remaining community shopping centers remains in force. The closing of that group is subject to the approval of an assumption of the loan securing the assets.

During 2002, Glimcher has closed on the sale of 17 community centers and threesingle-tenant assets for a total of $171.5 million. The REIT retains ownership, or has a joint-venture interest, in 85 properties with an aggregate 27.9 million sf.