Developers Diversified Realty Corp. of Cleveland announced Wednesday that it has completed its $300 million purchase of Salt Lake-based Hermes Associates' shopping centers.
In the transaction, Developers Diversified gets the Family Center malls in Taylorsville, Midvale, Riverdale, Orem, Ogden, Salt Lake City, Logan, Las Vegas and Rapid City, S.D. It also acquires the 53,749-square-foot Hermes Building in Salt Lake City.The deal included Developers Diversified stock valued at about $73 million, $30.8 million in assumed mortgages and about $194.2 million in cash and assumed liabilities.
Based on current leases and those contracted to start before the end of the year, the company said, the portfolio should produce a 9.4 percent first-year return on investment.
Developers Diversified said expansions totaling 305,452 square feet are under way or in final planning stages for the malls in Taylorsville, Salt Lake, Riverdale, Ogden and Las Vegas and new development of 1.6 million square feet of retail space is planned near Boise and in two Weber County locations.