DALLAS--Dallas-based Centennial Real Estate Co., Montgomery Street Partners, the real estate investment affiliate of Blum Capital Partners and USAA Real Estate Co., closed on a $1.1 billion acquisition of five regional malls from Westfield Corp.
Centennial will be the managing company responsible for the daily operations of each of the centers. MSP and USAA Real Estate Co. will be financial partners, and Westfield will maintain a minority equity interest. The existing on-site management teams will continue to operate the properties under Centennial's direction.
The portfolio features more than six million square feet of retail space across four states. With an average occupancy of more than 97%, the properties are Connecticut Post Mall in Milford, CT; MainPlace Mall in Santa Ana, CA; Hawthorn Mall in Vernon Hills, IL; Fox Valley Mall in Aurora, IL; and Vancouver Mall in Vancouver, WA.
"The partners in this transaction bring exceptional real estate expertise, and together we look forward to capitalizing on the many unrealized opportunities at each of these locations," says Steven Levin, Centennial Real Estate's chief executive officer. "Our goal is to provide a community hub and destination complete with the best available options in shopping, dining and entertainment."
The five-center acquisition advances Centennial's promise to reinvest in and revitalize U.S. retail hubs and surrounding communities. Each property will be evaluated to ensure that it is meeting the wants and needs of each local market and the shoppers it serves.
"We are very pleased to be completing our first venture with Centennial Real Estate and Montgomery Street Partners," says Len O'Donnell, president and CEO of USAA Real Estate Co. "I am confident this partnership will create additional value in these outstanding assets."
Centennial will implement marketing and leasing efforts that align with each mall's commitment to offer a current and unique mix of retail, dining, entertainment and special events for the local community.
"A mall can't just be about shopping anymore," Levin continues. "Understanding the needs of your market is the cornerstone of creating a one of a kind experience that guests can't get online or anywhere else."
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