Washington Prime Group Inc. (NYSE: WPG) has entered into a definitive agreement for a joint venture with an affiliate of O’Connor Capital Partners to own seven of the company’s open-air properties, which are valued at $600 million.

The pricing implies a low 5% capitalization rate on in-place NOI.

O’Connor will have a 49% interest in the joint venture and Washington Prime will retain a 51% non-controlling interest. The REIT will continue to lease…