Commercial Real Estate Continues to Gain Traction
Simon Property Group's acquisition of Prime Outlets is a big deal. Here is the Bloomberg article on the transaction. Simon is gaining twenty-two outlet properties and now has sixty in its portfolio. Patching information together with help from The CRE Review, it looks like Simon is paying approximately $315 per square foot. Not sure whether this is a good deal or what the aggregate cap rate is. The Bloomberg article quotes an analyst saying that the deal is good for Simon. Six of the properties are in Florida, which is another good sign for real estate, since Florida has been in such a slump. The slow emergence of the CMBS market will generate more transactions like this. It is interesting to note that Simon's outlet malls generate more sales per square foot than its regional malls ($492 v. $438).