Columbus-based Washington Prime Group Inc. has executed a letter of intent with Spirit Realty Capital Inc. for the sale of the fee interest or leasehold interest in eight outparcels for approximately $14.2 million.
Washington Prime Group CEO and Director Lou Conforti stated: “We continue to take advantage of the glaring disparity between our share price and noncore assets owned. The most recent definitive agreement for the sale of the fee interest or leasehold interest in eight outparcels totaling $14.2 million equates to a ~6.5 percent capitalization rate.
“In addition to the Spirit transaction, Washington Prime Group anticipates various other sales of outparcels and other non-income-producing parcels to close by year end, which are expected to result in ~$50M of proceeds which will be utilized to fund previously announced redevelopment. Good for Spirit Realty Capital. Good for Washington Prime Group.”
Washington Prime Group and Spirit Realty Capital anticipate closing on the majority of the outparcel sale in 2020, subject to due diligence and closing conditions. These outparcels are located in Colorado, Indiana, Iowa, Minnesota, New York and Ohio.
Spirit Realty Capital is a Dallas-based net-lease REIT that primarily invests in single-tenant, operationally essential real estate assets, subject to long-term leases. As of Sep. 30, 2019, the diversified portfolio was comprised of 1,623 owned properties and 43 properties securing mortgage loans. The owned properties are leased to 260 tenants across 48 states and 31 industries.
