Thank you for sharing!

Your article was successfully shared with the contacts you provided.

PHILADELPHIA-Locally based Pennsylvania Real Estate Investment Trust completes its acquisition of four area shopping centers from Columbia, MD-based Rouse Co. This is the larger portion of a six-property Rouse portfolio PREIT plans to acquire. It expects to close on the additional two properties this quarter.

Aggregate purchase price of the four centers, which total 3.6 million sf, is $469 million. The properties are: The Gallery at Market East in Center City; Exton Square Mall in Exton, PA; Cherry Hill Mall in Cherry Hill, NJ; and Moorestown Mall in Moorestown, NJ.

PREIT paid about $157 million in cash and assumed $277 million in non-recourse mortgage debt. The additional funding includes $35 million in operating partnership units issued to select partners of New Castle Associates. Of that amount, $17.8 million is expected to be issued in second-quarter 2004.

Ronald Rubin, chairman and CEO of PREIT, and George Rubin, a PREIT trustee and president of its management subsidiaries, are among the partners in New Castle Associates. PREIT acquired 49% of the partnership interests in New Castle for about $31 million, increasing its total share of New Castle to 73%. Substantially all $31 million was applied to the purchase price of Cherry Hill Mall and costs of the transaction. PREIT plans to buy the remaining equity of New Castle over the next 12 months.

The four Rouse acquisitions increase PREIT’s retail portfolio by 30%. It now includes 26 properties totaling 15.4 million sf.

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
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper


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 © 2021 ALM Media Properties, LLC. All Rights Reserved.