LEAWOOD, KAN. — Glimcher Realty Trust (NYSE:GRT), a Columbus, Ohio-based owner, manager and acquirer of shopping centers, has completed the $67.5 million purchase of One Nineteen, an outdoor property located in Leawood, a suburb of Kansas City. The approximately 165,000-square-foot center is located adjacent to another Glimcher property, Town Center Plaza, which Glimcher purchased in December 2011.
“We are pleased with the strategic acquisition of One Nineteen to complement Town Center Plaza,” said Michael Glimcher, CEO of Glimcher Realty Trust. “Together these properties represent 600,000 square feet of retail space, generating sales of more than $550 per square foot. They offer tremendous growth potential and will generate efficiencies in leasing and property management.”
One Nineteen’s tenant sales average more than $900 per square foot and the center in currently 93 percent leased. The occupancy rate of Glimcher’s mall portfolio closed at 95 percent at the end of 2011.
The open-air center is an attractive asset for Glimcher, which targets these outdoor centers for its portfolio.
“When we consider acquisitions, redevelopments or expansions, we are very attracted to the open-air concept,” said Glimcher in a recent interview with Heartland Real Estate Business, a France Media publication.
One Nineteen features upscale retailers, such as Kansas City’s first and only Crate & Barrel. Other tenants include lululemon athletica and an Apple Retail Store. These upscale merchants are also key to Glimcher Realty Trust’s acquisition strategy.
“For us, it’s about playing at the top,” said Glimcher. “When we look at acquisitions, we ask the question, ‘If a new retailer with the hottest retail concept came to a market with plans to open two new stores, would it be located in this property?’ If their first or second store in the market wouldn’t be there, it’s probably not a property we want to own.”
The company plans to place long-term financing on the property during the next several months in order to take advantage of the low interest rate environment.
Glimcher’s stock price closed Tuesday at $9.30 per share, down from $10.24 per share a year ago.