As the credit crisis drags on, several mall and shopping-center owners are willing to sell stakes in their best properties to raise capital.
Glimcher Realty Trust, which owns 23 U.S. malls and carries $1.6 billion in debt, this month hired Eastdil Secured to list for sale stakes in its Lloyd Center mall in Portland, Ore., its WestShore Plaza mall in Tampa, Fla., and its Polaris Towne Center shopping center in Columbus, Ohio, Glimcher executives say.
The properties are among the best in Glimcher’s portfolio, with Lloyd Center logging sales per square foot of $379 last year and WestShore registering $422. Lloyd Center has a $129 million mortgage coming due 2013. WestShore’s $91.5 million mortgage matures in 2012. And Polaris’s $39.3 million mortgage matures in 2010.
Glimcher, based in Columbus, would prefer to sell stakes in Lloyd Center and WestShore Plaza rather than outright sales. Green Street Advisors, a real-estate research firm, estimates the two malls would fetch somewhat low prices, translating to capitalization rates — a measure of a property’s income relative to its acquisition price — of 10% or higher. Glimcher won’t disclose targeted cap rates, but adds it anticipates rates below 10%.
Others that have said they are looking to raise capital by selling properties include Weingarten Realty Investors and Macerich.
—Kris Hudson
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