Thank you for sharing!

Your article was successfully shared with the contacts you provided.

BALTIMORE-Shopping outlet center REIT Prime Retail Inc.–which currently holds ownership and/or management rights to 37 retail properties across the US–has jumped on an opportunity to merge with Lakewood, NJ-based real estate firm The Lightstone Group. Through its affiliate, Prime Outlets Acquisition Co. LLC, Lightstone has committed to acquiring 15-year-old Prime Retail in a deal valued at a staggering $638 million. Assuming Prime Retail shareholders sign off on the proposal, Lightstone will assume $523 million in debt, and will fork over $115 million to shareholders for Series A preferred, Series B preferred and common stock.

Prime Retail sees the arrangement as a move that will not only benefit shareholders, but all others involved with the company, right down to the consumer. “For our tenants, the relationship with a well-capitalized real estate organization such as the Lightstone Group will provide us with the access to capital we need to finish the rehab of our centers and refine and expand our marketing efforts aimed at improving sales,” Prime Retail chairman and CEO Glenn Reschke explains. “For our employees, the buyer’s commitment to maintain the company’s headquarters in Baltimore will be good news to the over 90 employees based here.”

For its part, Lightstone hopes to serve as the added solid foundation on which Prime Retail can build a bigger and better outlet empire. “Our plan is to work with the talented team of professionals that the company has assembled in Baltimore and provide the financial platform and capital needed to grow and expand the company into other complementary forms of retail and entertainment,” Lightstone president and CEO David Lichtenstein says. Essentially, Prime Retail’s goals will not change. “We will keep our existing team and continue to execute our business plan, which is to increase occupancy at our centers and improve revenue,” Prime Retail’s Steven A. Sless tells GlobeSt.com.

Lightstone was not the only party interested in Prime Retail. “We’ve talked to some other people; Lightstone and their CEO seized this opportunity within the outlet industry,” Sless says. In October 2002, Prime Retail rejected an unsolicited buyout proposal from New York’s Fortress Investment Group LLC for $66.2 million, explaining that the bid was “inadequate.”

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

GlobeSt. NET LEASE Spring 2021Event

This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector.

Get More Information

GlobeSt. NET LEASE Awards 2021Event

These awards honor the industry's most influential and knowledgeable real estate executives from the net lease sector.

Get More Information


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.