By Business Wirevia The Motley Fool
Filed under: Investing
PREIT Expands Foothold in the Philadelphia Market
PHILADELPHIA–(BUSINESS WIRE)– Pennsylvania Real Estate Investment Trust (PREIT/NYSE: PEI) has acquired the 430,000 square foot, six story property located on the 900 block of Market Street in Philadelphia (“907 Market”). The building lies between two adjacent buildings owned by PREIT and is part of the retail complex known as The Gallery at Market East. The purchase price was approximately $59.6 million after giving effect to credits received by the Company, representing a capitalization rate of approximately 5.7% on in-place net operating income. The acquisition was funded by cash and a $10 million note that carries a 5% interest rate and is pre-payable at any time.
907 Market is comprised of 211,000 square feet of office space of which approximately 69,000 square feet is vacant and 219,000 square feet of retail space of which approximately 12,000 square feet is vacant. The building is currently 81.2% occupied. The majority of the retail space is leased to Kmart, whose lease expires in 2014.
“This is the final step in the acquisition of an assemblage of three blocks of prime real estate in Philadelphia, the nation’s sixth largest MSA,” said Joseph F. Coradino, CEO of PREIT. “As we contemplate vehicles for future growth, we feel The Gallery at Market East represents a significant opportunity.”
About Pennsylvania Real Estate Investment Trust
Pennsylvania Real Estate Investment Trust, founded in 1960 and one of the first equity REITs in the U.S., has a primary investment focus on retail shopping malls. Currently, the Company’s portfolio of 46 properties comprises 36 shopping malls, seven community and power centers, and three development properties. The Company’s properties are located in 13 states in the eastern half of the United States, primarily in the Mid-Atlantic region. The operating retail properties have approximately 31.0 million total square feet of space. PREIT, headquartered in Philadelphia, Pennsylvania, is publicly traded on the NYSE under the symbol PEI. The Company’s website can be found at www.preit.com.
Forward Looking Statements
This press release contains certain “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, Section 27A
From: http://www.dailyfinance.com/2013/04/17/preit-expands-foothold-in-the-philadelphia-market/
