The Blackstone Group has bought a 1.2-million square foot mall in Hawaii in a joint venture with Glimcher Realty Trust for $245 million.
The New York-based firm will retain an 80 percent interest in the venture, with Glimcher retaining the remaining 20 percent. Glimcher will lease and manage the Pearlridge Center in Honolulu, which was acquired from Northwestern Mutual Life, according to data provider Real Capital Analytics.
Columbus, Ohio-based Glimcher said in a statement the two firms paid $245 million for the centre, investing roughly $70 million of equity, funded according to the JV ownership interests. A $175 million first mortgage will be used to finance the transaction, which is expected to close in the fourth quarter.
The deal is believed to represent a 7.4 percent cap rate, according to RCA, with Glimcher adding that the mall – the second largest in Hawaii – was 99 percent leased.
In March, Blackstone bought a 60 percent stake in two regional shopping centres from Glimcher for $320 million.
The firm acquired the majority stakes in the Lloyd Center in Portland, Oregon and WestShore Plaza in Tampa, Florida. The gross value for the combined transaction was approximately $320 million, including the assumption of $218 million in mortgage loans currently secured against the properties, according to Glimcher.