Included in the deal is a 50% stake in the 2-million-sf Tysons Corner Center in McLean, VA, the highest-profile property owned by Rochester, NY-based Wilmorite. Bloomingdales, Hecht's, LLBean, Lord & Taylor and Nordstrom anchor that center. Macerich officials have said they could expand that mall, possibly adding high-rise residential towers.
The other super-regional centers on the East Coast that Macerich bought are the 1.5-million-sf Freehold (NJ) Raceway Mall and the 1.3-million-sf Danbury (CT) Fair Mall. The average sales per-sf of Tysons, Freehold and Danbury are $525. Officials also said there are expansion opportunities at Freehold.
Currently Macerich, based in Santa Monica, owns one East Coast gem, the Queens (NY) Mall, a center that it recently expanded at a cost of $275 million, but the majority of its centers are on the West Coast and in the Southwest. The remainder of the Wilmorite deal is made up of centers in upstate New York and Kentucky, and the total portfolio's sales per-sf are $403.
Wilmorite officials said in October that they were exploring "strategic alternatives." One issue brought up by analysts at the time was whether Wilmorite would be able to include its 50% stake in Tysons as part of the deal because the other partner in the center, Alaska Permanent Fund, might try to block the transaction.
The last deal that Macerich did of this magnitude was in 2002, when it bought Westcor's 27-center portfolio of Southwestern upscale malls and open-air centers for nearly $1.5 billion.
More recently, earlier this month, Macerich and Walton Street Capital acquired the 1.3-million-sf Ridgmar Mall, in Fort Worth, TX, for $71.1 million. Dillard's, Foley's, J.C. Penney, Neiman Marcus and Sears anchor that center.
The Macerich-Wilmorite acquisition comes at a time of major consolidation in the retail real estate industry. Plymouth Meeting, PA-based center owner Kramont Realty Trust sold earlier this month its 93 properties to Australia-based Centro Properties Group for $610 million. Other major acquisitions of the past year have included General Growth Properties' $7.2-billion purchase of the Rouse Co. and Simon Property Group's $3.5-billion buy of Chelsea Property Group.
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