Mall sale to be finalized in third quarter

The Logan Valley Mall has been sold.

Pennsylvania Real Estate Investment Trust announced the execution of three transactions that will yield about $75 million toward the company's outlined capital plan, according to a company press release.

One of those transactions is the local mall.

According to the press release, a purchase and sale agreement has been executed with a significant non-refundable deposit and closing anticipated during the third quarter, which typically would be around the end of September, depending on the company’s fiscal calendar.

"This is another example of our ability to execute in a challenging environment. This is a critical step in the further transformation of PREIT into a top-tier mall company. As the retail industry evolves, there are many opportunities to improve the shopping environment and raising capital through the sale of non-core properties, provides the perfect vehicle for creating value for our shareholders," said PREIT CEO Joseph F. Coradino in a statement.

PREIT officials, who have not revealed the buyer or the purchase price, said they could not provide additional information until the deal is closed.

The Blair County Chamber of Commerce will be closely watching.

"PREIT has been a good community partner with a number of local organizations -- ours included -- and we're hoping that a new ownership group will have similar regard for what retail means to the Blair County economy," said President/CEO Joe Hurd.

PREIT announced in May it was offering for sale the local mall and the Valley View Mall in LaCrosse, Wis.

PREIT acquired the Logan Valley Mall in 2003 as part of a merger with Crown American Realty Trust. The deal included 26 Crown American malls and PREIT assuming $619 million in mortgage debt, the Mirror reported in 2003. Shareholders were to receive about one share of PREIT for three shares of Crown American stock.

Crown American had owned the mall since its opening.

Logan Valley Mall opened in November 1965 as an open-air shopping center with Sears, Weis Markets and a few small shops.

PREIT sold the Nittany Mall near State College and the North Hanover Mall for $32.3 million in 2014.