MALIBU, CA-Columbus, OH-based retail REIT Glimcher Realty Trust has reached a contract to purchase the leasehold interest on Malibu Lumber Yard, a 31,441-square-foot, open-air retail center here, for approximately $35.5 million. The transaction is expected to closer later this month and is subject to customary closing conditions.
Malibu Lumber LLC developed the center on city-owned land in 2009, and the transfer of the leasehold contract was approved on Monday night by the Malibu city council. Glimcher expects to fund the acquisition though availability on its corporate credit facility.
The property is a two-story specialty retail center located along the Pacific Coast Highway. Tenant sales at the Lumber Yard average more than $1,000 per square foot, and the center is currently 84% leased. The property features numerous upscale boutiques including James Perse, Tory Burch, Intermix, Alice & Olivia, J.Crew-at-the-Beach and Quicksilver Girls.
“The Malibu Lumber Yard is an attractive asset due to the exceptional tenant mix, sales productivity and one-of-a-kind location,” said Michael Glimcher, the buyer’s chairman of the board and CEO, in a prepared statement. “The retail property offers high productivity and outside NOI growth potential as we stabilize the occupancy of the center.
Malibu Lumber Yard is situated in a highly visible location along California’s coastline. The property is surrounded by exceptionally affluent residential communities including Calabasas, Agoura Hills and Westlake Village. Average annual household income within a 10-mile radius of the property is $163,000, more twice the national average.
“In the current market, we continue to see growth opportunities in upscale and highly productive retail center like the Malibu Lumber Yard,” said Glimcher. “This acquisition is consistent with our strategy of adding premier assets at the top of our portfolio while seizing opportunities to continue expanding our relationships with desirable tenants.”
As GlobeSt.com previously reported, in May Glimcher added to its $139 million purchase of Town Center Plaza in Leawood, KS, with the acquisition of the property next door, One Nineteen, for $67.5 million. The two properties total 815,000 square feet. The REIT bought Town Center in December in a property swap with Cleveland-based DDR Corp., selling DDR the Polaris Towne Center in Columbus for $80 million. Town Center includes tenants Macy’s and Dick’s Sporting Goods. Glimcher gained a $77 million mortgage loan on the center in January.
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Carrie Rossenfeld
Carrie Rossenfeld is a reporter for the San Diego and Orange County markets on GlobeSt.com and a contributor to Real Estate Forum. She was a trade-magazine and newsletter editor in New York City before moving to Southern California to become a freelance writer and editor for magazines, books and websites. Rossenfeld has written extensively on topics including commercial real estate, running a medical practice, intellectual-property licensing and giftware. She has edited books about profiting from real estate and has ghostwritten a book about starting a home-based business.
