O’Connor Capital Claims Stake in Retail Portfolio

O'Connor Capital Partners has paid a hefty sum to acquire a 49 percent interest in five shopping malls in Hawaii and across the country.

O’Connor Mall Partners L.P., an affiliate of New York-based O’Connor Capital Partners, has paid $1.6 billion to acquire a 49 percent interest in five shopping malls, including the Pearlridge Center in Aiea, Central Oahu.

he seller, Ohio-based WP Glimcher, retained the majority ownership of a 51 percent interest in the properties, which it will continue to manage.

Built in 1972, Pearlridge Center features more than 1.1 million square feet of retail space and ranks as Hawaii’s second-largest mall after Ala Moana Center in Honolulu. This high-performing property is anchored by Macy’s and Sears and hosts a multitude of national retailers, specialty shops, retail merchandising units and a movie theater.

The other four shopping centers that were part of the transaction are all located on the Mainland and include The Mall at Johnson City in Johnson City, Tenn.; Polaris Fashion Place in Columbus, Ohio; Scottsdale Quarter in Scottsdale, Ariz.; and Town Center Plaza (which consists of Town Center Plaza and the adjacent Town Center Crossing) in Leawood, Kan.

WP Glimcher was represented by Eastdil Secured LLC, with Wachtell, Lipton, Rosen & Katz as legal advisor. Neal, Gerber & Eisenberg LLP is serving as legal advisor to O’Connor.

Glimcher will use the proceeds from the sale, which amount to about $430 million, to repay a portion of its bridge loan used to finance the purchase of Glimcher Realty Trust, which closed in January. The remaining balance will be repaid with the proceeds from a new five-year, $500 million loan the company expects to obtain during the second quarter of 2015.

Glimcher Realty Trust purchased a 20 percent stake in Pearlridge Center in 2010, in a joint venture with Blackstone Real Estate Partners. In 2012, the company acquired the remaining 80 percent interest from Blackstone for approximately $289.4 million.

Photo credit: www.wpglimcher.com