The company reports average annualized rent per sf for comparable centers was $41.96, up 1.3 percent from $41.44 for the first quarter of 2001.
In February, Taubman broke ground on Stony Point Fashion Park in Richmond, VA, an open-air center scheduled to open in September 2003. The company is well along with the leasing of the property, with more than 50% of the mall space committed.
During the quarter, the company completed the sale of La Cumbre Plaza in Santa Barbara, CA and announced the pending sale of Paseo Nuevo, also inSanta Barbara. A portion of the proceeds from those transactions will befunneled into a 50% interest in Sunvalley, a four-anchor center located in Concord, CA.
The Paseo Nuevo and Sunvalley transactions are expected to close during the second quarter.
"During our six-year ownership of La Cumbre and Paseo Nuevo, we achieved a combined 21% internal rate of return on our equity investment," Taubman says. "We are reinvesting a portion of the proceeds from these sales into a growing asset at an attractive cap rate of 10.8 percent."
The company also exercised its option to increase its ownership position in Arizona Mills in Phoenix to 50%. The company will purchase an additional 13.2% interest in the center from Simon Property Group for $14 million in cash plus the $19-million share of debt that encumbers the property. The cap rate on the transaction is expected to be 9.4%. The closing is expected during the second quarter.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
