KANSAS CITY—Taubman Centers, Inc. and The Macerich Co. have just agreed to purchase the iconic Country Club Plaza in Kansas City from Highwoods Properties, Inc. for $660 million in cash. The 15-block mixed-use retail and office property was originally built in 1922 and has become the center of a vibrant submarket here. Its sale is another sign that certain markets in the central region have now caught the attention of national investors after years in which coastal markets garnered the most notice.

Taubman and Macerich will each have a 50% interest in the center, which the companies will jointly manage. Company officials expect that, concurrent with or shortly after closing, to get a long-term, fixed-rate loan for 50-60% of the purchase price.

"Taubman and Macerich are bringing our collective expertise together to continue to ensure the long-term growth and success of the iconic Country Club Plaza," says Robert S. Taubman, chairman, president, and chief executive officer of Bloomfield Hills, MI-based Taubman. "This purchase is consistent with our strategy to own high quality, dominant assets in great markets."   

Macerich has been unloading slower-growth assets, including Panorama Mall in Panorama City, CA, which, as reported in GlobeSt.com, it recently sold for $100 million, and buying "market-dominant centers with stronger growth prospects," says Arthur Coppola, chairman and chief executive officer of Santa Monica, CA-based Macerich. "Together with Taubman, we see opportunities to expand the market reach of the Plaza as well as the potential for further retail densification of this timeless asset."

The boards of directors for both companies have already approved the transaction. Officials expect that, subject to usual and customary closing conditions, it will close in the first quarter of 2016.

Located in the heart of Kansas City, the 1.3 million square foot property includes 804,000 square feet of gross leasable area with 45 unique-to-market tenants, including Apple, H&M, Tesla and Lululemon. The 468,000 square foot office portion of the property contains the ten-story Valencia tower, where the Lockton Cos. has its world headquarters, and additional office space located above the ground-level retail.

In this transaction Taubman was represented by general counsel Chris Heaphy, and outside counsel Martin Katz of Honigman Miller in Bloomfield Hills, MI; Macerich was represented by chief legal officer Tom Leanse and outside counsel Tom Muller of Manatt, Phelps & Phillips in Los Angeles, and seller Highwoods was represented by general counsel Jeff Miller and outside counsel Terry Crumpler of Allman Spry in Winston-Salem, NC.