About 70% of the stores are in open-air centers, while the rest are on enclosed mall sites. Of the 2.7 million sf in the portfolio, about two million sf is in California, and the rest lies in Arizona and Nevada.
When the deal was announced last month DDR chairman and CEO Scott Wolstein outlined three possibilities for the future of the stores: they will continue operation as Mervyn's stores, they could get bought out by another retailer, or pending the failure of the chain, DDR could redevelop the properties into other retail uses, such as splitting the stores into developments with multiple retailers.
Since the announcement, Mervyns' board of directors announced that they plan to shutter 62 under-performing units. With that move the retailer is exiting Michigan, Oklahoma and parts of Colorado, to concentrate on its West Coast and Southwest business, where it operates 193 stores.
DDR is also selling 25 office and industrial properties to a fund operated by Brascan Corp. for $177 million, which will in part fund the Mervyns deal. Company executives said that deal was also supposed to close this month.
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