REIT Selling Colorado Properties

Prime Retail, Baltimore, is selling two Colorado retail properties for a total consideration of $96 million.The two properties (located in Castle Rock and Loveland) together have approximately 808,000 square feet of leasable area, the real estate investment trust said. The properties are part of a group of 15 properties that secure a major nonrecourse mortgage loan with an outstanding balance of approximately $338.9 million for Prime Retail, the REIT said. Prime expects to use the net proceeds from the sale partly to make a "required partial defeasance payment" on the major mortgage loan. Any balance from the proceeds will be used to pay down the company's mezzanine debt, which has an outstanding principal balance of $31.1 million. The sale is expected to close in the current quarter, and the parties have agreed to "liquidated damages" amounting to $500,000 under certain circumstances if the undisclosed buyer does not proceed with the purchase.