Glimcher Sells Nine Community Centers for $94M

PHILADELPHIA-Columbus, OH-based Glimcher Realty Trust has completed the sale of nine community center properties totaling 2.1 million sf for approximately $94.3 million or about $44.90 per sf. The buyer is identified only as U.S.P.G. Portfolio One, LLC and U.S.P.G. Portfolio Two, LLC.

Of the proceeds, approximately $91.6 million are being used to repay an 8.46% fixed-rate mortgage that was scheduled to mature on July 1, 2009. The balance is being used to reduce outstanding borrowings on Glimcher’s line of credit.

“The paydown of additional debt as a result of this transaction also provides an opportunity to further improve our ratio of debt-to-market capitalization, which was 58.1% at Sept. 30,” says president Michael P. Glimcher in a statement.

The nine properties are: Aviation Plaza, 174,715 sf, in Oshkosh, WI; College Plaza with 178,431 sf located in Bluefield, VA; Cross Creek Plaza, 242,118 sf, in Beaufort, SC; Crossing Meadows, 233,984 sf, set in Onalaska, WI; Cypress Bay Village, totaling 256,853 sf, located in Morehead City, NC; Franklin Square, 236,564 sf, in Spartanburg, SC; Marion Towne Center, with 156,543 sf, in Marion, SC; Village Plaza, 479,960 sf, in Augusta, GA, and Walterboro Plaza, encompassing 132,130 sf in Walterboro, SC.

The divestiture represents the final closing on the sale of a 22-asset portfolio. The 13 initial assets were sold on Aug. 29, for approximately $106 million. Nine of those 13 properties are in Ohio.

The complete roster of properties sold in August is: Barren River Plaza, 245,295 sf, in Glasgow, KY; Cherry Hill Plaza, 35,975 sf, set in Galax, VA; Crossroads Centre, with 242,430 sf located in Knoxville, TN; Delaware Community Plaza, 153,451 sf, in Delaware, OH; East Pointe Plaza, with 145,111 sf, in Marysville, OH; Hunter’s Ridge, 175,807 sf, Gahanna, OH; Lowe’s Altoona, totaling 121,148 sf in Altoona, PA; Lowe’s Columbus, 125,357 sf, in Columbus, OH; Mill Run Square, 172,154 sf, Hilliard, OH; Mt. Vernon Plaza, with 61,718 sf in Mt. Vernon, OH; River Valley Plaza, 223,865 sf, in Lancaster, OH; Springfield Commons/Toys R Us, with 213,017 sf set in Springfield, OH, and the 200,503-sf Wal-Mart Plaza in Springfield, OH.

In all, Glimcher sold 27 community centers and three single-tenant assets during 2002 for a total of $275.2 million. It currently retains ownership of or has a joint-venture stake in 73 properties aggregating 25.7 million sf.