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News release

Chicago

Jones Lang LaSalle Brings Four Regional Malls to Market

Portfolio offers attractive assumable financing


CHICAGO, MAY 20, 2009 — Jones Lang LaSalle is now marketing a portfolio of four regional malls for sale across the eastern United States.   The 1.9-million-square-foot retail mall portfolio, owned by the Lightstone Group, was placed into receivership in January 2009.  It is being offered as individual assets or portfolio sale.  The properties are located in Cleveland, Tennessee; Martinsburg, West Virginia; Rome, Georgia; and Hermitage, Pennsylvania.
 
Leading the Jones Lang LaSalle team on this assignment are Managing Directors Kris Cooper and Margaret Caldwell, with assistance from Greg Maloney, CEO of Jones Lang LaSalle’s Retail Group head of the firm’s distressed asset receivership asset team.
 
“This portfolio should appeal to a wide variety of national entrepreneurial mall investors as it offers extremely attractive assumable financing with 80 percent loan to purchase price and a maturity date of 2016,” said Mr. Cooper.  “Each of these malls is extremely well located in healthy growing regions and offers retail investors significant upside potential.”
 
The four regional malls are:
 
• Bradley Square Mall in Cleveland, TN:  Bradley Square Mall is a 406,845-square-foot regional mall anchored by Belk, JCPenney, Sears and Big K-Mart.  It is located just 30 minutes from Chattanooga--the only enclosed shopping mall within 30 miles.  It is located at the intersection of Paul Huff Parkway and Highway 2/Highway11 and serves as the nucleus for the retail corridor.  The property offers prospective investors numerous repositioning opportunities, including additional development, in a prime location.
 
• Martinsburg Mall in Martinsburg, WV:  Martinsburg Mall is a 552,212-square-foot regional mall anchored by Bon-Ton, JCPenney, Sears and a Wal-Mart Supercenter.  It is located in Berkeley County, the fastest growing county in West Virginia and one of the fastest growing in the United States.  It is well positioned along Interstate 81, approximately 25 miles from Hagerstown, MD and Winchester, VA.  All anchors on the property are owned by the mall owner and there are more than six acres available for expansion or development.
 
• Mount Berry Square Mall in Rome, GA:  Mount Berry Square Mall is a 476,778-square-foot mall anchored by Belk, JCPenney and Sears, located equal distance from Chattanooga, Birmingham and Atlanta.  The property is located along Martha Berry Highway/Highway 27 and Old Dalton Highway.  Three outparcels remain undeveloped and offer prime locations for potential restaurants or expansion of existing outparcels.  The property’s in-line space has value-add potential as well.
 
• Shenango Valley Mall in Hermitage, Pennsylvania:  Shenango Valley Mall is a 507,837-square-foot center anchored by Macy’s, JCPenney and Sears, located in the heart of Mercer County.  The property is located along Route 18, which connects directly to I-80, and E. State Street at the center of the retail corridor.  The property is 99 percent occupied and offers a tax-free shopping experience on most clothing and footwear.
 
“Each mall also offers investors a unique opportunity to reposition and/or expand the property based on the individual needs of the market, including not only expansion, but future land development in certain cases as well,” said Ms. Caldwell.  “Unlike most mall properties, all of these offerings, with the exception of the Shenango Valley Mall, are 100 percent owned, providing the eventual owner with full control.”
 
Through its Value Recovery Services, Jones Lang LaSalle is focusing its extensive expertise in all facets of commercial real estate to provide specialized services to clients that are affected by the current financial crisis.  These services include helping financial institutions address the operational, occupancy and cost reduction needs resulting from the rapid pace of mergers and acquisitions in that industry.  They also include advising those financial institutions with troubled loans and foreclosed real estate (REO) on their balance sheets, including note sales and disposition of REO.  Additionally, the firm is providing receivership services, asset and property management, leasing and disposition services for clients with assets experiencing financial difficulties or foreclosure.  The firm also is helping clients raise capital by monetizing owned facilities through sale-leaseback transactions and providing creative asset management and financial solutions to hotel owners and investors struggling in current markets, and  assisting owners and lenders in developing asset value creation and recapitalization strategies for underperforming investment properties.
 
Jones Lang LaSalle Capital Markets is composed of a broad range of real estate investment debt and equity specialists, and corporate finance experts, working on all property types and in all the major national markets on behalf of major institutional and local investors and developers, as well as corporations.  The firm's Capital Markets professionals are highly skilled at pinpointing and tailoring the right capital solutions for each of these client's needs.   The Investment Sales teams assist investors in developing and executing asset recapitalization strategies for office, industrial, retail, multifamily, healthcare and seniors housing product. The firm’s Real Estate Investment Banking experts raise debt and joint venture equity for investors and developers, and provide derivatives structuring and loan sale advisory services. 
 
The Corporate Capital Markets professionals help corporations develop and execute strategies that bridge their occupancy, capital deployment and financial reporting objectives for their facility portfolios.  The Development and Asset Strategy team specializes in the sale of non-income-producing properties in their various forms from vacant buildings to raw land to entitled parcels and partially completed subdivisions.  The firm's Value Recovery Services assist clients affected by the current financial crisis by creating value while managing risks through evaluating operational and occupancy needs, assisting with challenged assets and liabilities on their balance sheets, providing receivership services, asset management, raising capital through sales-leasebacks and providing leasing and recapitalization strategies for distressed assets. In the past two years, the firm’s Capital Markets team handled $117 billion of transaction volume.
 
About Jones Lang LaSalle
 
Jones Lang LaSalle (NYSE:JLL) is a financial and professional services firm specializing in real estate. The firm offers integrated services delivered by expert teams worldwide to clients seeking increased value by owning, occupying or investing in real estate. With 2008 global revenue of $2.7 billion, Jones Lang LaSalle serves clients in 60 countries from 750 locations worldwide, including 180 corporate offices.  The firm is an industry leader in property and corporate facility management services, with a portfolio of approximately 1.4 billion square feet worldwide. LaSalle Investment Management, the company’s investment management business, is one of the world’s largest and most diverse in real estate with more than $41 billion of assets under management. For further information, please visit our Web site, www.joneslanglasalle.com.