BIRMINGHAM, Mich., June 3 /PRNewswire/ -- Malan Realty Investors, Inc.
(NYSE: MAL), a self-administered real estate investment trust (REIT), today
announced it has completed the acquisition of a portfolio of 12 shopping
centers anchored by Wal-Mart stores from Sandor Development Company, a closely
held real estate company headquartered in Indianapolis, Ind. The properties
have approximately 329,000 square feet of gross leasable area (GLA) and are
located in six Midwestern states.
Malan Realty Investors is financing the $29.5 million acquisition with an
$18 million, 15-year, 7.43 percent fixed-rate loan from Bloomfield Acceptance
Company and funds from existing lines of credit, the company said. The
properties' occupancy rate is 94.8 percent, with 6 of the 12 properties
100 percent leased. Most of the shopping centers were constructed during the
mid-1990s, giving the portfolio an average age of three years. The Wal-Mart
stores are not included in the acquisition, and Malan will receive no rental
revenue from Wal-Mart.
"These shopping centers are major destinations in their communities, and
we are pleased that all of the Wal-Mart stores feature a full-size format and
have land for expansion," said Anthony S. Gramer, president and chief
executive officer of Malan Realty Investors. "The acquisition increases the
number of Wal-Mart anchored shopping centers in our portfolio to 17 from 5 and
adds several new retailers such as On Cue Records and Rentway, in addition to
such tenants as Dollar Tree, Maurices and Sears Optical."
The locations and approximate GLA of the shopping centers are:
Illinois Michigan
Champaign: 11,458 sq. ft. Benton Harbor: 14,280 sq. ft.
Jacksonville: 52,880 sq. ft. Owosso: 60,324 sq. ft.
Sturgis: 12,000 sq. ft.
Indiana
Crawfordsville: 25,750 sq. ft. Minnesota
Decatur: 36,300 sq. ft. Little Falls: 12,456 sq. ft.
Huntington: 12,485 sq. ft.
Ohio
Kansas Mansfield: 55,316 sq. ft.
Chanute: 15,447 sq. ft.
El Dorado: 20,000 sq. ft.
The company has also agreed to acquire an additional community shopping
center located in Decatur, Ill., from Sandor Development Company once a
redevelopment of that shopping center has been completed. Closing on that
acquisition is anticipated to take place in November 1998.
Malan Realty Investors, Inc. owns and operates a portfolio of 66 shopping
centers, freestanding stores and entertainment facilities, primarily in the
Midwest. The properties represent approximately 6.1 million square feet of
gross leasable area. The company currently has 3.8 million common shares
outstanding.
News releases for Malan Realty Investors are available through Company
News On-Call by fax at 800-758-5804, ext. 114165, or
http://www.prnewswire.com.
SOURCE Malan Realty Investors, Inc.
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Company News On-Call: http://www.prnewswire.com or
fax, 800-758-5804, ext. 114165
CONTACT:
Michael K. Kaline, Vice President of Malan
Realty Investors, 248-644-7110; or Fred Nachman of
Corporate.Technology Communications, Inc., 312-832-9300, ext.
202, for Malan
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