HONOLULU, HAWAII — A joint venture between Blackstone Real Estate Advisors and Glimcher Realty Trust has entered into an agreement to acquire a Honolulu shopping mall from Northwestern Mutual for $245 million. Blackstone will own an 80 percent interest in Pearlridge Center, with Glimcher owning the remaining 20 percent. The joint venture will fund the purchase with a new $175 million mortgage and equity contributions from the two companies. The joint venture has posted $10 million in earnest money toward the closing, which is expected in the fourth quarter.
“Pearlridge Center is a highly productive and well-occupied mall that fits perfectly within our strategy of upgrading the quality of our real estate portfolio,” said Michael Glimcher, CEO of Glimcher Realty Trust, in a statement. “We are excited to expand our strategic relationship with The BlackStone Group through this investment.”
Pearlridge Center is the second largest mall in Hawaii, containing more than 1 million square feet of leasable space. The property was constructed in 1972 and renovated in 1996. Its anchors include Macy's, Sears, Toys “R” Us, Ross Dress For Less, Bed Bath & Beyond, Longs Drug Store and an 18-screen theater. Located in city's Aiea submarket, the property is known as Honolulu's local mall. According to Glimcher, Oahu's retail market experienced positive net absorption in 2009, and Pearlridge has fared similarly well, with a current occupancy of 99 percent and inline tenant sales of approximately $500 per square foot.
— Coleman Wood