Highlands REIT Sells Lincoln Mall Property
February 14, 2019 | James Sprow | Blue Vault
On February 13, 2019, Highlands REIT, Inc. through MB Lincoln Mall, L.L.C, a wholly-owned subsidiary of the REIT, agreed to sell the Lincoln Mall in Lincoln, Rhode Island, to an affiliate of Acadia Strategic Opportunity Fund V LLC, an unaffiliated third-party buyer. Highlands REIT will sell the property for a gross sale price of $57.0 million, subject to certain adjustments and prorations.
The Lincoln Mall was purchased by InvenTrust Properties Corp. (formerly Inland American Real Estate Trust, Inc.) in 2006 for $61.4 million and had a carrying value on the InvenTrust balance sheet at the time of the spin-off of Highlands REIT by InvenTrust of $68.1 million. The retail property had 445,466 total gross leasable area and had a percentage of economic occupancy as of December 31, 2017, of 92.56%. The average annual base rent per leased square foot for 2017 was $12.33, with significant tenants Stop & Shop, Cinema World, Lincoln Tech, HomeGoods, Target and Marshalls. In total, the mall has 31 stores and eight restaurants.
The selling agreement contains customary representations and warranties, which survive the closing of the sale for a period of nine months. Pursuant to the agreement, Highlands’ aggregate liability to the purchaser for claims for any breaches of any representations or warranties of the seller is limited to no more than $1.425 million and subject to a deductible of $50,000.
For a full description of Highlands REIT, see the recent Blue Vault article entitled “The Interesting Case of Highlands REIT-Part II in a Series on InvenTrust Properties Corporation” on the Blue Vault website.
Source: SEC, Blue Vault, www.mallseeker.com
Learn more about Inland Real Estate Investment Corporation on the Blue Vault Investment Manager page
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