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Deal of the Week 11/5

Inland Investment Advisors Inc. disclosed beneficial ownership of 2,330,100 shares of Glimcher Realty Trust. The shares represent 6.2 percent of Glimcher’s outstanding common stock. Inland Investment Advisors bought 1,959,800 shares of Glimcher’s stock on behalf of Inland American Real Estate Trust Inc. and 83,400 shares of Glimcher’s stock on behalf of Inland Western Retail Real Estate Trust in open market transactions that took place between May 2007 and October 2008.

In a document filed with the Securities and Exchange Commission on Oct. 30, Inland also discussed the possibility of further investment in Glimcher, including the acquisition of additional shares through a cash tender offer, joint venture partnerships, asset acquisitions or a merger. Glimcher’s stock has been trading at very favorable prices recently, according to Hilliard Lyons analyst John Roberts, hitting a 52-week low of $4.40 per share on Oct. 10.

“Given the cash flow that could be generated from Glimcher’s portfolio, a deep pocketed investor could step up to buy the company at currently depressed prices,” Roberts wrote in an Oct. 24 note.

The company has taken care of its debt maturities for the next 15 months, according to RBC Capital Markets analyst Rich Moore, and continues to post solid results. In the third quarter of 2008, it beat consensus analyst estimates by $0.02 per share, with FFO per share of $0.46. For its part, Inland has long expressed interest in becoming active in the regional mall sector. Though Glimcher is not in a position where it would be forced to accept a merger offer, Inland “would be an interesting source of capital,” Moore says. “In this environment, anybody who has capital is worth talking to.”

Inland Investment Advisors declined to comment for this article citing SEC regulations, as did Glimcher Realty Trust. At the close of the business day on Tuesday, Glimcher’s stock was trading at $5.02 per share.

Other Notable Deals
Sperry Van Ness negotiated the sale of 440 Commons, a 162,533-square-foot shopping center in Jersey City, N.J., from Developers Diversified Realty to a private investor for $24.6 million. The transaction was completed at a 6.76 percent cap rate…Faris Lee Investments negotiated the sale of an 11,646-square-foot retail property in Palmdale, Calif. from Palmdale 2006 Co. to a private investor for $6.3 million… Holliday Fenoglio Fowler, L.P. secured a $4.7 million permanent loan for Long Valley Village, a 29,600-square-foot lifestyle center in Washington Township, N.J. The loan, which was placed with the Provident Bank, featured a 10-year term and a fixed interest rate.

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