X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

TLANTA-The 16-year-old, 80%-leased, 629,000-sf Wiregrass Commons Mall in Dothan, AL is under new ownership today after Crown American Realty Trust of Johnstown, PA bought the asset and 60 adjoining acres from Metropolitan Life Insurance Co. for $40.4 million.

One of the buying pluses for the equity REIT was the mall’s location and its presence as the only enclosed regional mall in the southeastern corner of Alabama, adjacent to Georgia and the Florida Panhandle, Crown chairman/CEO/president Mark E. Pasquerilla says in a prepared statement.

Dothan calls itself the Peanut Capital of the World for the peanut industry in its area.

Anchored by Dillard’s, Parisian, JCPenney and McRae’s, the mall’s tenants are averaging $260 per sf in store sales. Pasquerilla projects the property’s annual net operating income will exceed $4.2 million. Anchor tenants own 403,000 sf in the mall.

“We believe the mall has excellent growth potential from re-tenanting and occupancy gains, and from potential future development of the vacant land that was part of the acquisition,” Pasquerilla says.

Crown funded the acquisition with a $30 million floating rate mortgage loan from an undisclosed lender. The balance was funded from cash and from the company’s line of credit.

The REIT’s portfolio comprises 27 regional malls with 17 million sf of gross leasable area in 10 states.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.