Feldman Mall Properties, a real estate investment trust focusing on enclosed regional shopping malls, has purchased a leasehold interest on 103,000 square feet of retail space at the Tallahassee Mall in Tallahassee, Fla.
Feldman, which bought the mall in May, will now become the landlord of Goody’s and Ross Dress for Less. Feldman bought the leasehold interest from a subsidiary of Kimco Realty Corp., issuing 369,375 shares of Feldman’s common stock to the Kimco subsidiary.
The leasehold, which is being conveyed to a Feldman subsidiary, was originally an F.W. Woolworth lease (Woolco Inc.) Woolco sublet its leasehold to Goody’s and Ross Dress for Less. A subsidiary of Feldman will become the direct landlord of Goody’s and Ross.
Feldman will receive rent payments directly from Goody’s and Ross. The real estate investment trust expects to realize an increased rental stream above the current rent of approximately $484,000 a year.
The lease terms with Goody’s and Ross have approximately six and 11 years remaining, respectively. Goody’s has an additional five-year option to renew its lease.
Feldman acquires, renovates and repositions enclosed retail shopping malls. Its strategy is to acquire underperforming malls and transform them into physically attractive and profitable Class A or near Class A malls.
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