Last month, General Growth Properties paid $249 million for 100% of the 1.2-million-sf Four Seasons Town Centre in Greensboro, NC as well as the 50% interest in the 1.4-million-sf Town East Mall in Mesquite, TX that it did not own.
The REIT will use fixed-rate mortgages and unsecured term loans to pay for its latest acquisitions, which are expected to close next month. With $25.9 million of net operating income expected during the 12 months after closing, the deals are at a 6% capitalization rate.
Sales are approximately $485 per sf at Mall of Louisiana, currently 91.4% occupied and anchored by Foley's, Dillard's, JCPenney, McRae's and Sears. Sales are approximately $390 per sf at Riverchase Galleria, which is 93% occupied and anchored by Parisian, Rich's, McRae's, Sears and JCPenney.
"Mall of Louisiana and Riverchase Galleria represent the best and broadest shopping destinations in their regions," says General Growth Properties chief executive officer John Bucksbaum. "Mall of Louisiana is the most productive retail asset in Louisiana and Riverchase Galleria is the largest retail venue and the No. 1 tourist attraction in Alabama."Riverchase Galleria is older, having been built by Jim Wilson & Associates in 1986 and expanded in 1998. Mall of Louisiana, co-owned by Jim Wilson & Associates, was developed in 1997. General Growth will manage Riverchase Galleria, while Jim Wilson & Associates will remain as a joint venture partner.
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