SOURCE: Feldman Mall Properties, Inc.

Feldman Mall Properties, Inc.

September 09, 2011 07:30 ET

Sale of Northgate Parcels and Update to Sale of Stratford Square Mall

NEW YORK, NY--(Marketwire - Sep 9, 2011) - Feldman Mall Properties, Inc. (PINKSHEETS: FMLP) made the following announcements:

Northgate Mall

The Company's subsidiary, Ohio River Valley LLC ("ORV"), has entered into an Earnest Money Contract with Tabani Acquisitions LLC of Dallas, Texas, for the sale of ORV's fee simple interest in a 9.089 (more or less) acre parcel of undeveloped real estate adjacent to the Northgate Mall, located in Cincinnati, Ohio. The Purchase Price is $1,500,000.00, payable all in cash at closing, subject to adjustment for customary prorations of expenses and the like. The property was formerly owned by JC Penney Corporation. Closing is subject to a number of usual conditions and is expected to occur in the late Fall of 2011.

FMP Northgate Outparcel LLC ("FMPO"), a subsidiary of the Company, has entered into a Real Estate Purchase and Sales Agreement with Greer Land Co. Restaurants LLC, of Lexington, Kentucky, for the sale of FMPO's fee simple interest in a 0.414 (more or less) acre parcel of undeveloped real estate adjacent to the Northgate Mall. The purchase price is $90,000.00, payable all in cash at closing, subject to adjustment for customary prorations. Closing is subject to a number of usual conditions and is expected to occur prior to the end of 2011.

Stratford Square Mall

FMP Stratford LLC ("FMPS"), a subsidiary of the Company, and FMC Stratford Mall Members LLC have modified the agreement for their respective sale and purchase of the Stratford Square Mall to provide for adjustments of the purchase price at the time of settlement based upon post-settlement projected cash flow. Due to the need for securing the lender's consent to transfer of the property, along with local municipal approvals, none of which have as yet been obtained, and the passage of time regarding the satisfaction of other conditions to settlement, the actual purchase price will probably be less than the $2.9 million previously indicated. However, FMPS continues to receive the positive cash flow generated by the property.

The date of settlement has been extended to September 30, 2011, although the purchaser has the right to an additional extension of up to thirty (30) days pending receipt of the lender's consent and local municipal approvals.

Exploring Opportunities

The Company continues to be engaged in exploring strategic alternatives and business opportunities with the aim of maximizing shareholder value.

About Feldman Mall Properties, Inc.

The Company's shares of common stock are quoted on Pink OTC Markets, a privately-owned company formerly known as Pink Sheets, which operates Pink Quote. For more information on Feldman Mall Properties Inc., visit the Company website at www.feldmanmall.com

Contact Information

  • CONTACT:
    FELDMAN MALL PROPERTIES, INC.
    John F. Dougherty, Jr.
    Senior Vice President and General Counsel and Secretary
    (215) 564-8084
    1065 Avenue of the Americas, 19th Floor
    New York, NY 10018