Philadelphia-based Pennsylvania Real Estate Investment Trust has completed the sale of the 717,000-square-foot Paxton Towne Centre in Lower Paxton Township, according to a company announcement.
The shopping center, which opened in 2001, was sold for $76.8 million to Kansas-based Rubenstein Real Estate Co., according to company filings with the U.S. Securities and Exchange Commission.
The agreement was announced in November.
PREIT developed Paxton Towne Centre for $55 million, and the property had a book value of $57.9 million as of Sept. 30, the trust said. The development is anchored by Target, Costco, Kohl’s and Weis Markets.
Other key retailers include H.H. Gregg, Michael’s, Books-A-Million, Babies R Us, and Bed, Bath and Beyond.
The property secured a mortgage loan with an outstanding balance of $50 million, according to PREIT. In connection with the transaction, the company used $50 million in proceeds to repay this mortgage, yielding net proceeds of $24.9 million after closing costs and before certain post-closing obligations.
The company said it intends to use the proceeds to make further reductions in debt and for general corporate purposes.
“By completing the sale of Paxton Towne Centre, PREIT is improving its balance sheet by reducing debt, while creating more focus on our core mall portfolio,” Joseph F. Coradino, CEO of PREIT, said in a statement. “Market fundamentals have led to increased demand for high-quality power centers, making this an ideal time to harvest the value created through development, management and leasing of this property.”
PREIT also has received a deposit to sell its Christiana Center in Newark, Del., to an affiliate of the Paxton Towne Centre buyer. The $75 million transaction is expected to close by the end of the first quarter, according to PREIT.
