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PHILADELPHIA-Locally based Pennsylvania Real Estate Investment Trust moves closer to eliminating its 19-property multifamily portfolio with completion of the sale of two more wholly owned assets to King of Prussia, PA-based Morgan Properties.

The assets are Emerald Point in Virginia Beach, VA, and Regency Lakeside in Omaha, NE. Morgan paid approximately $81.4 million, including assumed debt of $33.8 million for the two assets. PREIT’s net proceeds are $44.3 million, a figure that reflects a purchase price credit of $3 million, awarded to Morgan upon the closing of all 15 of PREIT’s wholly owned properties.

The REIT has now completed the sale of 17 of its 19 multifamily properties and has received approximately $408 million of the expected purchase price of $417 million for all 19 assets. It expects to sell its two remaining joint-venture multifamily assets to its joint-venture partners during this quarter. The properties are Fox Run in Warminster, PA and Will-O-Hill in Reading, PA.

PREIT is applying “a substantial portion” of the proceeds from the multifamily transactions to pay off the balance of an acquisition term loan, secured to buy retail assets from Columbia, MD-based Rouse Co. and to pay down its $25-million unsecured line of credit.

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