Pennsylvania Real Estate Investment Trust (NYSE: PEI) has sold the Chambersburg Mall located in Chambersburg, PA for $8.8 million, or just $19 per square foot, to an affiliate of Mason Asset Management.
Chambersburg Mall is a 454,356-square-foot regional center developed by Crown American Corp. in 1982 on 160 acres in the Harrisburg Area West submarket of Franklin County, in Greene Township, immediately off the 997-Scotland Exit of I-81
The asset is anchored by JCPenney, Sears, Bon Ton and Burlington Coat Factory, though many in-line spots sit vacant, and restaurants have typically stayed away from the area because of difficulties in obtaining a liquor license. Sales at the mall are $235 per square foot and non-anchor occupancy hovers around 76% -- well below PREIT's portfolio averages of $381 per square foot and 90% occupancy.
"Finalizing the sale of Chambersburg Mall represents a critical step on the path to redefining the quality of PREIT's portfolio. The property has been among our weakest performing properties and we are pleased to be in a position to allocate our internal resources and capital more effectively toward projects that can create long term value for our shareholders," said Joseph F. Coradino, CEO of PREIT.
Proceeds from the sale, net of closing costs, settlement pro-rations and credits, came in at approximately $8.4 million for the real estate investment trust.
www.omegare.com
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