Washington Prime Group Inc., together with O’Connor Mall Partners, has acquired an additional section at Pearlridge Center, located in Aiea, Hawaii, for $70 million.
Pearlridge Center is currently comprised of two distinct enclosed venues commonly referred to as Uptown and Downtown.
The newly acquired 180,000-square-foot section, which is part of Uptown, is anchored by Ross Dress for Less and TJ Maxx and is 91% occupied.
Lou Conforti, CEO and Director stated: “This transaction results in the complete control of Pearlridge Center under one operator. Gaining control was quite important as we commence with the previously announced redevelopment project with our partner, O'Connor. Also appealing is the immediate accretion as we are acquiring a 91% occupied parcel anchored by TJ Maxx and Ross Dress for Less.”
O’Connor is the partner in the Company’s joint venture that owns the property. The Company’s pro rata share of the purchase price is approximately $35.7 million. The joint venture plans to place approximately $40 million of secured debt on the property during the second quarter of 2017. Washington Prime Group has initially funded its share of the purchase price with funds from the Company’s credit facility until the debt is placed.
Fred Paine, General Manager of Pearlridge Center added: “The consolidation of Pearlridge Center under one management and leasing team will streamline operations and further enhance the customer experience. We welcome the new Uptown tenants and look forward to providing our customers an enhanced mix of retail and dining options.”
Washington Prime announced in January 2017 a $33 million redevelopment project at Pearlridge Center which includes a significant remodel of Downtown consisting of new tenants, a contemporary dining space, new interior and exterior finishes and updated entranceways. Also part of the overall redevelopment project are specialty grocery store Down to Earth, which will move to an expanded freestanding space; a Bank of Hawaii financial services center; Pieology; Five Guys Burgers and Fries; and innovative menswear retailer Lindbergh.
O’Connor Mall Partners, L.P., is an affiliate of O’Connor Capital Partners.
Pearlridge Center is a 1.3 million-square-foot super-regional shopping center located in Aiea off of Kamehameha Highway. It is Hawaii’s largest indoor retail center and features Oahu’s only monorail system. The 55-acre property consists of Uptown and Downtown complexes offering more than 220 retail, dining and entertainment options.
Washington Prime Group Inc. is a retail REIT and a recognized leader in the ownership, management, acquisition and development of retail properties.