Glimcher Realty Trust, of Columbus, Ohio, plans to purchase, for about $112 million, the remaining interest in WestShore Plaza, Tampa, from its joint venture partner, an affiliate of Blackstone Real Estate Partners VI, the REIT announced Thursday. The purchase will put WestShore Plaza fully into Glimcher’s ownership for the first time in about three years.
In an unrelated transaction, both partners will sell their interests in Lloyd Center in Portland, Ore.
Both properties currently are held in a JV in which Glimcher holds a 40 percent interest and Blackstone 60 percent.
The sales are expected to close within 60 days, subject to customary closing conditions. After the closings, the JV will no longer own any real estate properties or other assets, other than certain liquid assets to cover post-closing obligations.
Glimcher will purchase the 60 percent interest in WestShore Plaza for $111.8 million: $40 million in cash and an assumption of Blackstone’s pro rata share of the $119.6 million loan. The purchase price will be funded initially by a combination of the proceeds from the sale of Lloyd Center and availability on Glimcher’s credit facility.
“Consistent with our long-term growth plan, we are pleased to regain full ownership of WestShore Plaza. With sales in excess of $410 per square foot, the center continues to perform well and … offers one of the best restaurant line-ups in the region, which research shows is increasingly important to our shopper,” Michael Glimcher, chairman and CEO of Glimcher, said in a release.
Built in 1967 at the corner of West Shore and Kennedy boulevards, WestShore was acquired by Glimcher in 2003. The JV with Blackstone closed in early 2010.
The center is anchored by Macy’s, JCPenney and Sears, with other stores including H&M, Ann Taylor, White House Black Market, Victoria’s Secret and Francesca’s. Restaurants include Maggiano’s Little Italy, Mitchell’s Fish Market, PF Chang’s China Bistro, The Palm Restaurant and Seasons 52.
The two buyers of the Lloyd Center, described only as “unaffiliated third parties” were not disclosed, and a Glimcher spokesperson was unable to provide CPE with further information.
After repayment of the existing loan on the property, Glimcher’s share of the net proceeds from the sale of Lloyd Center and four outparcels will be about $28.4 million.
Lloyd Center was developed in 1960 as the country’s largest shopping center. With nearly 1.5 million square feet of space, today it’s still one of Oregon’s largest shopping. It features six anchors, 180-plus shops, a 900-seat food court, four full-service restaurants, an indoor ice-skating rink and an eight-screen theater.