BETHESDA, MD—Washington Prime Group, theSimon Property spin off of its strip center business,is moving to establish its portfolio. On Tuesday morning WashingtonPrime Group announced that it has entered into a definitiveagreement to acquire Simon Property's interest in a portfolio ofseven open-air shopping centers, a transactionthat is expected to close later this week.
Previously, Washington Prime held between 32% to 42% ownershipinterests in the properties, but received substantially lesseconomic benefit due to Simon Property's preferred capitalallocation. With this transaction, Washington Prime will own 100percent of four properties and approximately 88.3% of the remainingthree for a purchase price of $162 million. Thetransaction also includes the assumption of an additional $83.8million in mortgage debt.
The portfolio of properties totals over 2.1 million square feetand is approximately 96% occupied. Four of the centers are locatedin Florida, and one each in Indiana, Connecticut and Virginia. Alsoincluded in this transaction is land valued at approximately $4million.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
