Glimcher Realty Trust, the owner of shopping malls in 17 states, agreed to buy the Puente Hills Mall for $81 million in cash, its first purchase in Southern California.
The mall, located in the City of Industry, has 1.2 million square feet of leasable space and is anchored by Sears and Robinsons-May department stores. Glimcher, a Columbus, Ohio-based real estate investment trust, said it would assume $89 million of mortgage debt as part of the purchase. The seller was a closely held group of investors that Glimcher didn't name.
The mall is part of Glimcher's plan to invest in larger, regional malls that have greater potential for revenue increases than community shopping centers. The company owns retail centers in Ohio, West Virginia, Tennessee and other states.
Glimcher said it would spend $10 million for an interior renovation at Puente Hills, including an expanded food court and a new children's play area.
There are about 400,000 people within a 5-mile radius of the mall, and the average household income is about $70,000 to $80,000 a year, said Mark E. Yale, Glimcher's chief financial officer.
Glimcher's stock fell 51 cents to $23.20.