Washington Prime Group Inc. (fka WPGGQ)

[Enterprising Investor]

Washington Prime Group Closes on Fixed Rate Loan Secured by Southgate Mall, a Tier One Dominant, Hybrid, Mixed Use Town Center (10/01/18)

Town center's catchment area extends into 24 counties and is minutes from The University of Montana

COLUMBUS, Ohio, Oct. 01, 2018 (GLOBE NEWSWIRE) -- Washington Prime Group Inc. (NYSE:WPG) today announced that the Company has closed on a $35.0 million loan secured by Southgate Mall, a Tier One property located in Missoula, Montana. The interest-only loan has an initial term of 36 months and bears interest at a fixed rate of 4.48%. There are two one-year extensions available under the loan agreement.

Lou Conforti, CEO and Director of Washington Prime Group stated: "The commercial mortgage loan secured by our recently acquired Southgate Mall, situated in Missoula, Montana, makes me happy for several reasons. First, having First Interstate Bank as a lending partner serves as validation regarding the viability of our asset. As a leading $12B regional financial institution serving Montana, Idaho, Oregon, South Dakota, Washington and Wyoming, I'd contend these folks know what makes sense when it comes to the Northwest. Second, it's always satisfying to disprove those pundits who pontificate about the absence of commercial mortgage availability. Third, Missoula is a really cool place where cowboy boots and Birkenstocks live in harmony."

First Interstate Bank provided the financing, demonstrating its and Washington Prime Group's ongoing commitment to the Missoula community. The Company expects to use proceeds from the loan to reduce outstanding balances on its credit facility and for its ongoing redevelopment efforts.

The Company plans to reposition two anchor spaces at Southgate Mall, which were previously occupied by Herberger's and Herberger's Men's department stores until closing in August 2018. The transformation of the former department store spaces enables Southgate Mall to continue to provide guests with an increasingly enjoyable environment to shop, dine and spend time together, and the Company is in discussions with new tenants, which will be announced in the future.

Southgate Mall is anchored by a dynamic mix of retail, entertainment and dining options, including a new nine-screen, dine-in AMC Theater complex; Lucky's Market, a specialty grocer focused on natural, organic and locally-grown products, which replaced a former Sears department store; national home furnishing retailers Bed Bath & Beyond and Cost Plus World Market; a regional sporting goods retailer; national department store Dillard's; Montana-style casino bars, and numerous national and local specialty retailers.

Along with Lucky's Market, a group of restaurants including Café Dolce, Mustard Seed and Red Robin Gourmet Burgers and Brews are among the food and beverage options offered at Southgate Mall, solidifying Southgate Mall as the area's premier food and beverage destination.

In addition to AMC Theater and Lucky's Market, tenants at Southgate Mall that have opened, remodeled or expanded locations over the past 24 months include Athleta, Bath & Body Works, Gap and Gap Kids, H&M, Lane Bryant, PINK, Sephora located in JCPenney, Victoria's Secret and White Barn. Non-retail uses found at Southgate Mall include local services and office tenants.

As a tourism center between Glacier and Yellowstone National Parks, the community caters to the 5 million-plus travelers who visit the region each year. Resorts and luxury developments have become synonymous with Western Montana in the past decade. Situated between the famed developments of the Bitterroot Valley to the south, and lake and golf resorts to the north, Southgate Mall caters to a large catchment area. The market lies at the crossroads of Interstate 90 and Highway 93, and its international airport is serviced by some of the nation's leading carriers.

About Washington Prime Group

Washington Prime Group Inc. is a retail REIT and a recognized leader in the ownership, management, acquisition and development of retail properties. The Company combines a national real estate portfolio with an investment grade balance sheet, leveraging its expertise across the entire shopping center sector to increase cash flow through rigorous management of assets and provide new opportunities to retailers looking for growth throughout the U.S. Washington Prime Group® is a registered trademark of the Company. Learn more at www.washingtonprime.com.

https://www.nasdaq.com/press-release/washington-prime-group-closes-on-fixed-rate-loan-secured-by-southgate-mall-a-tier-one-dominant-20181001-01219