Owner selling Colonial Park Mall for $15M
The longtime owner of the Colonial Park Mall in Lower Paxton Township has signed a "definitive agreement" to sell the nearly 60-year-old mall for $15 million.
Ohio-based retail real estate investment trust Washington Prime Group Inc. said last week that it is selling the enclosed Dauphin County mall off Jonestown Road to an unidentified private real estate investor.
The company has recently been renegotiating mortgages and selling off restaurant properties to reduce debt.
Washington Prime expects to record a non-cash impairment charge of $20.9 million related to the sale of the mall. Company officials declined to share further details about the deal, including the name of the buyer, until it closes. That is expected within the next month.
Last month, Washington Prime agreed to sell 41 restaurant outparcels, including those at Colonial Park Mall, to California-based Four Corners Property Trust, a real estate investment trust engaged primarily in the acquisition and leasing of restaurant properties.
The mall, built in 1960, is 738,798 square feet with more than 90 tenants.
Washington Prime formed as a spin-off company from Simon Property Group. It inherited the mall when it acquired Glimcher Realty Trust in 2014. Glimcher took ownership of the Colonial Park Mall in 1997 when it acquired former owner Catalina Partners LP.
At the time of the merger in 2014, Washington Prime became WP Glimcher. The company changed back to Washington Prime last year following the resignation of former CEO Michael Glimcher.
Shares of the Washington Prime's stock are traded on the New York Stock Exchange under the ticker symbol WPG.
This story has been updated to reflect the anticipated closing date on the mall sale.