X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

BALTIMORE-The sale of Prime Retail Inc. to an affiliate of the Lightstone Group LLC for $626.5 million in cash and assumed debt has been completed. The affiliate, Prime Outlets Acquisition Co. LLC, is paying a total of $115.5 million for Prime Retail, a self-administered, self-managed REIT. The deal also calls for the buyer to assume approximately $511 million of the company’s debt.

Last month, shareholders of the locally based Prime Retail approved the acquisition. The vote came at a special meeting, with 70% of Series A preferred stockholders, 79.6% of Series B preferred stockholders and 58.4% of common stockholders supporting the buyout.

Under the terms of the agreement for the acquisition, Prime Retail’s Series A preferred stockholders will get $18.40 per share. Holders of Series B preferred stock will get $8.169 per share, and holders of Prime Retail common stock will get $0.17 per share.

The buyout of Prime Retail is part of an aggressive ongoing acquisition and expansion program on the part of Lightstone. Founded in 1988 and headed by president and CEO David W. Lichtenstein, Lightstone, based in Lakewood, NJ, owns and manages a diversified portfolio of 16,000 apartments, as well as office, industrial and retail properties. That portfolio currently totals more than 9.1 million sf of space in 18 states and Puerto Rico, according to Lichtenstein.

Prime Retail, meanwhile, presently owns and/or manages some 36 retail outlet centers totaling about 10.2 million sf of gross leasable area. The company, which also dates to 1988, owns about 154,000 sf of office space as well.

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

*May exclude premium content
Already have an account?

Dig Deeper

GlobeSt

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 © 2020 ALM Media Properties, LLC. All Rights Reserved.