Pennsylvania Real Estate Investment Trust is pursuing its previously announced strategy of improving the quality of its portfolio by selling non-core assets. One of the first non-core assets to trade is Orlando Fashion Square Mall, recently sold in a $35 million cash transaction.
“The sale of Orlando Fashion Square and the previously announced sale of Phillipsburg Mall are further evidence of our commitment to the plan we’ve laid out to elevate the quality of our portfolio and improve our operating metrics. We are pleased with the terms of this transaction and look forward to continuing to achieve our strategic objectives,” said Joseph F. Coradino, CEO of PREIT.
The 1.1 million-square-foot Orlando Fashion Square Mall is anchored by Dillard’s, jcpenney, Macy’s and Sears. According to PREI, sales at the property were $233 per square foot and non-anchor occupancy was 80.7 percent as of December 31, 2012, both of which were below PREIT’s portfolio averages. The property was part of the collateral pool securing the company’s 2010 Credit Facility. The recent sale resulted in a gain of approximately $0.6 million to be recognized in the first quarter of 2013.
In other commercial real estate news, Duke Realty’s Central Florida office closed five leases totaling 435,728 square feet at industrial properties in the Orlando area. The leases included a long-term renewal of 275,000 square feet with Ford Motor Company at Park 27 Distribution Center in Davenport, Fla., southwest of Orlando; new leases of 37,683 square feet with Alstyle Apparel and 19,300 square feet with FM Convention Contractors Inc. at Parksouth Distribution Center; and renewals of 78,295 square feet with Benjamin Moore and 25,450 square feet with Universal Studios.
Duke Realty’s Tim Perry, vice president of leasing in Central Florida, represented the company in the five transactions.