By Linda Moss CoStar News
Pennsylvania Real Estate Investment Trust has sold one of its New Jersey malls for $45 million to Kohan Retail Investment Group, that landlord's second recent purchase in the Garden State.
The sale of the Cumberland Mall in Vineland, New Jersey, is part of Philadelphia-based PREIT's effort to raise capital and improve its balance sheet. PREIT didn't disclose the buyer, but according to CoStar data it was Kohan Retail of Great Neck, New York. Kohan Retail didn't immediately respond to to an email and phone call seeking comment Wednesday.
The sale price is a significant discount from the $59.5 million that PREIT paid for Cumberland Mall in February 2005.
This isn't the first time Kohan Retail is buying a New Jersey mall. Known for picking up distressed properties, Kohan Retail acquired Livingston Mall from Simon Property Group in June for $60.5 million.
PREIT, which emerged from Chapter 11 bankruptcy protection in December 2020, has been trying to get its financial house in order. It has been selling some malls and redeveloping others, adding uses such as multifamily housing and medical facilities.
"As a result of completed asset sales, the company has applied proceeds and excess cash from operations to pay down debt by $148 million through Oct. 31," PREIT said in a statement on Wednesday.
The firm also has an additional $127 million of properties under contract or negotiation for sale, deals that are expected to close in the coming months.
With the completion of the sale of the Cumberland Mall and several outparcels, PREIT said it will have raised $110 million in capital this year. The REIT also "has a robust pipeline of additional asset sales in various stages," according to its statement.
Back in August, PREIT officials said they had over $200 million in property sales either completed or pending, capital it planned to use to pay down more of its debt.
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