Mills' spokesman David D'Onofrio declines to discuss the price of the deal prior to closing.
Forest Fair was developed by Hooker Developments for $250 million in March 1989. Later that year, Hooker filed for bankruptcy protection, along with lead tenants B. Altman and Bonwit Teller. Since then, the property has changed hands three times and suffered occupancy rates as low as 54%.
Gator purchased the property in 1999 and brought it to its current 73% occupancy rate. It now has 15 anchors and 33 specialty stores along with a 12-screen Showcase Cinema. Among the anchors are a 105,000 sf Kohl's, a 144,000-sf Bass Pro Shops Outdoor World, an 80,000-sf Burlington Coat Factory and a 33,000-sf Off 5th, Saks Fifth Avenue Outlet.
The Mills expects to target additional assets similar to Forest Fair. This is the first property the company has not overseen from the ground up.
Laurence C. Siegel, chief executive officer and chairman of The Mills, describes "acquiring and converting a troubled regional mall into a highly productive center" as a "new venture" for his company. "Forest Fair Mall possesses some similar features and qualities of a traditional Mills destination (making it) a natural choice for our firstendeavor," he says in a statement.
The center will take on The Mills name-identity in late 2003. Representatives of Saks' Off 5th and Bass Pro Shops expressed confidence in The Mills' plans, which include expansion of the center's entertainment sector as well as the addition of new retail tenants.
The Mills currently has 12 Mills and one Block retail and entertainment properties, all described as "market-dominant." Four new projects are under construction in the US along with one in Toronto and another in Madrid, Spain.
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