The Blackstone Group and mall REIT, Glimcher Realty Trust, entered into a joint venture agreement that would be seeded by two of Glimcher's best malls -- Lloyd Center in Portland and WestShore Plaza in Tampa.
Under terms of the joint venture, Blackstone would acquire a 60% stake in the properties, while Glimcher would maintain a 40% stake and continue to lease and manage the center. The gross value for the combined transaction is approximately $320 million, which includes $218 million in mortgage loans in place on the properties. At this value, Blackstone's 60% acquisition price would be approximately $192 million, including the assumption of $130.8 million in debt.
Although not confirmed, the Wall Street Journal cited an anonymous source that broke out the acquisition price by asset. Reportedly, Blackstone would pay $39 million in cash and assume $75 million in debt for its stake in the Lloyd Center mall and would pay $27 million in cash and assume $54 million in debt for its stake in the WestShore Plaza mall. The capitalization rate is estimated at 9.5% for the two malls, which are among only seven malls of the REIT's best malls that it classifies as "Market Dominant."
WestShore serves as collateral in two deals, BSCMS 2003-T12 and MSC 2003-IQ6, with $100mm ($59.677 outstanding) portion of the A note in each. The 2Q '09 NCF DSCR was 2.10x, occupancy at 97%. Matures 9/9/2012.
Lloyd Center is also in two deals, WBCMT 2003-C5 and WBCMT 2003-C6, with $140mm ($63mm outstanding) portion of the A note in each. The 2Q '09 NCF DSCR was 1.88x, occupancy at 97%. It matures 6/11/2013.