EXTON AND SCRANTON, PA. — Philadelphia-based Pennsylvania Real Estate Investment Trust (PREIT) has completed two loans totaling $118 million for two Pennsylvania malls. In the first transaction, PREIT secured a $70 million, non-recourse mortgage loan for Exton Square Mall, a 1.1 million-square-foot, enclosed mall located in Exton. The mall was acquired by PREIT in 2003, and is anchored by Boscov’s, JCPenney, Macy’s and Sears. As of closing, non-anchor occupancy was 83.6 percent and 12-month same-store sales were $359 per square foot. The loan carries a 7.5 percent fixed interest rate and a 5-year term. The lender was undisclosed. In the second transaction, PREIT secured a $48 million, non-recourse mortgage loan for Viewpoint Mall, a 750,000-square-foot, enclosed mall located in Scranton. The mall was also acquired by the company in 2003. It is anchored by JCPenney, Macy’s and Sears; non-anchor occupancy as of closing was 92.5 percent. The mall had 12-month same-store sales of $375 per square foot. The interest-only loan, which was provided by a commercial bank, carries a variable interest rate of LIBOR plus 2.35 percent that was swapped to a 5.24 percent fixed interest rate for its 5-year term.
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