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ASHTABULA, OH-Cabot Investment Properties has taken out a $92.6 million loan to cover the purchase and redevelopment of three mall properties in Indiana and Ohio. The company bought the 816,605-sf Ashtabula Mall here, the 461,111-sf North Park Mall in Marion, IN and the 426,785-sf Southland Mall. The acquisition and a redevelopment plan will end up costing about $115.7 million.

CB Richard Ellis’ Capital Markets managing director Keith Braddish and VP Jason Gaccione secured the 10-year, non-recourse, first mortgage loans that are structured on 30-year amortization schedules with three years of interest-only payments. “Cabot will be able to take advantage of the stable population base in this region, while refocusing leasing efforts to cater to the younger generation and families, which in turn will drive foot traffic and releasing momentum,” Gaccione said in a statement. He said the Royal Bank of Canada provided 80% of Cabot’s total cost, inclusive of acquisition and redevelopment costs.

Cabot bought the malls from Cafaro, with the Southland Mall sold for $29 million and the North Park Mall sold for $32.4 million, sources say. The sale price for the Ashtabula Mall was not available. Tenants at the 91% occupied Southland include Steve & Barry’s and Elder-Beerman, with a Sears as a shadow anchor. Tenants at the 89%-occupied North Park include Elder-Beerman, J.C. Penney, and Sears. The 70-store Ashtabula Mall opened in 1992, and includes tenants such as Dillard’s, J.C. Penney, Kmart, Sears and Dunham’s Sports.

Revitalization plans for these malls include re-tenanting, parking lot upgrades, HVAC and roofing renovations, and sign improvements. A CBRE spokeswoman tells GlobeSt.com that the company cannot reveal the amount to be spent on redevelopment. “It is a substantial, multi-million dollar cosmetic renovation of the malls, quite substantial,” she says. The malls plan to stay open during renovations, the spokeswoman says.

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