The sale of Prime Outlets is something David Lichtenstein must have been dreaming of. The real estate mogul was having a tough time of it with his company the Lightstone Group being in debt with more than $80 million owed to Citigroup. This was part of the $120 million that they used to acquire 660 hotels which were part of the Extended Stay Hotels chain.
The sale of Prime Outlets was enough to ensure that David Lichtenstein could clear these debts and went a long way to helping him secure the future health of his real estate company in uncertain times.
Prime Outlets Sale
David Lichtenstein and the Lightstone Group acquired prime Outlets in 2003 for $115 million in cash and the assumption of $523 million in debt and they were able to sell it to the Simon Property Group for $700 million in cash and an assumed debt of $1.6 billion. This is obviously a massive increase and will go a long way to securing the future of David Lichtenstein and his real estate company, who will walk away with around $450 million once all of the associated fees are taken care of.
The sale of Prime Outlets just goes t show that it is still possible to make money from real estate providing you are as smart as David Lichtenstein and know when to hold on to your investments and when to let them go.