The assets were acquired by BayView over the last six months, three from Simon Properties Group and one each from John Hancock Mutual Life Insurance Co. and Bank of America's REO division. The total price tag on the transactions exceeded $100 million.

I/ESG Mall Group executive director Steve Huber, who was recruited by Insignia to grow its third party mall business, tells GlobeSt.com that the biggest hurdle to clear when taking over the books on such a large portfolio--particularly a newly acquired asset group--lies in assembling a vast amount of information quickly and efficiently.

"The biggest challenge you always face when you move into a new property is the exchange of information," Huber tells GlobeSt.com. "We had five properties coming from three different sources. But we've been able to work with BayView to get the input we need to be able to do the fiscal accounting were hired to do."

Insignia began management of one property in December, three earlier this month and will take over at the fifth mall March 1. "There's been good communication," Huber adds. "We feel we're ahead of the curve. We're definitely moving forward."

According to Huber, Insignia is benefiting from the tail end of a disposition trend. "The industry continues to consolidate and investors are acquiring the last round of REO properties and REIT properties that no longer fit in with their long-term strategies," he says. "These investors have turned to Insignia/ESG as an experienced operator capable of leasing, managing, and in many cases repositioning these assets."

Included in the BayView Portfolio are:

  • University Mall, Carbondale, ILA 656,772-sf mall built in 1974 anchored by JCPenney, Famous-Barr and K's Merchandise
  • Merritt Square Mall, Merritt Island, FLA 799,0789-sf mall built in 1970 anchored by Burdines, Dillard's JCPenney, Publix, Sears and Theatre
  • Richmond Square Mall, Richmond, INA 392,395-sf mall built in 1966 and anchored by Dillard's JCPenney, OfficeMax, and Sears
  • Memorial Mall, Sheboygan, WIA 462,618-sf mall anchored built in 1969 and anchored by Kohl's and Sears
  • Mounds Mall, Anderson, INA 407,113-sf mall built in 1965 anchored by Elder Beerman and Sears

Insignia now manages 15 regional and super regional malls in 11 states including California, Texas, New York, Florida, Illinois, Washington, Wisconsin, Minnesota, Indiana, Alabama and Arizona.

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