Glimcher, DDR Swap $80M, $139M Assets in Columbus, Kansas City
- Sep 08, 2011
September 8, 2011
By Nicholas Ziegler, News Editor
In an interesting move that’s “mutually beneficial given the core competencies of each organization,” Glimcher Realty Trust and DDR have traded properties. This is no schoolyard lunchtime potato-chips-for-pudding swap, either: Glimcher is selling the Columbus, Ohio-based Polaris Towne Center for approximately $80 million, and DDR is unloading the Town Center Plaza in Kansas City for around $139 million — with the buyers being each other.
“We are excited about this transaction that not only enhances the quality of Glimcher’s mall portfolio but is also expected to be accretive to our earnings,” said Michael P. Glimcher, chairman of the board and CEO of Glimcher. “We are also pleased to work with a respected peer like DDR on a transaction that provides a strategic step forward for both of our companies.”
The Columbus property is a 700,000 square foot prime asset will be DDR’s seventh property in that city, and is anchored by Target, Lowe’s and Kroger. Glimcher’s new holding in Kansas City is a 650,000-square-foot, open-air mail anchored by Dick’s Sporting Goods and Macy’s that boasts a 95 percent occupancy rate.
“The simultaneous disposition of Town Center Plaza and acquisition of Polaris Towne Center is consistent with our strategic objective of simplifying our portfolio and focusing on what we do best,” said Daniel B. Hurwitz, president and chief executive officer of DDR. “The high level of collaboration, creativity and trust between DDR and our colleagues at Glimcher made this rare type of transaction possible.”
The deal is expected to close in the fourth quarter of 2011.