TGS Realty forked over $96 million in cash for the ColoradoProperties. Both centers are located just outside of Denver, andconsist of the decade-old, 478,000-sf Prime Outlets at Castle Rock,and the eight-year-old, 328,360-sf Prime Outlets at Loveland. PrimeRetail steered $74.8 million from the deal toward the reduction ofthe balance on its non-recourse mortgage loan known as the MegaDeal Loan. Net proceeds from the disposition are expected to be inthe neighborhood of $12.4 million.

The Barceloneta, Puerto Rico outlet center offers 176,000 sf ofretail space among 37 stores, and will now belong to PR BarcelonetaLLC for cash consideration of $36.5 million. The property isexpandable to 450,000 sf, and includes out-parcels currently underdevelopment for non-outlet retail use. Having made its debut justover two years ago, Prime Outlets Puerto Rico was the REIT's onlycenter outside the US. But as a Prime Retail spokesman explained toGlobeSt.com last month, "the potential sale of Prime Outlets PuertoRico is not part of a strategy to move out of the market." Netproceeds from the Puerto Rico property are expected to reach nearly$14 million, and Prime Retail will stay on to manage, market andlease the property.

As for plans for the net proceeds from both deals, Prime Retailwill use the money to pay down $25.2 million in mezzanine debt thatstarted out as a $90 million loan. Explaining the company'sdisposition strategy, Prime Retail's Steven A. Sless tellsGlobeSt.com, "We've stated in the past that we will take a look atoffers on our properties and if they make financial sense for thecompany and for shareholders, we'll consider them." The sale of theColorado Properties and the Puerto Rico outlet are not likely to bethe last centers to exit the company's portfolio. Sless adds that,"offers to Prime Retail to purchase any of the properties will beconsidered based upon merit and value to the company."