HONOLULU (HawaiiNewsNow) - A mainland real estate investment trust is buying Pearlridge Center, the second largest shopping mall in Hawaii.
Glimcher Realty Trust (NYSE: GRT) of Columbus, Ohio, has owned 20 percent of the Aiea mall since 2010, but will now pay $149.4 million to buy out majority partner Blackstone Group (NYSE:BX) and will assume Blackstone's piece of the $175 million in mortgage debt the two groups incurred to make the original acquisition two years ago.
To finance the deal, Glimcher said it would issue 17.5 million new shares of Glimcher stock, adding to the 116.2 million shares already outstanding. Several large commercial real estate deals in recent months have been financed through the issuance of stock rather than trying to borrow money from banks.
Pearlridge is the biggest mall in Hawaii after General Growth's Ala Moana Center, and its 1 million leaseable square feet are 99 percent occupied. In-line tenant sales approach $500 per square foot. Sales were fairly strong at Pearlridge even during the bottom of Hawaii's recession and have improved since then.
Blackstone and Glimcher expect to close the sale in the second quarter.