Cumberland MallBrookfield Property Partners has sold a 49% stake in three super regional malls to CBRE Global Investors, which made the acquisition on behalf of institutional investor clients. The deal values the properties at $1 billion, according to a report in the Wall Street Journal.
The portfolio consists of 3.7 million square feet of retail space and is 98% leased. The malls are:
|- Cumberland Mall: a 1 million square foot super-regional mall in northwest Atlanta
- Ridgedale Center: a 1.2 million square foot super-regional mall in western Minneapolis
- The Parks Mall at Arlington: a 1.5 million square foot super-regional mall between Dallas and Fort Worth
The acquisition indicates that big bets on retail are still viable investment strategies for some institutions.
“We believe that Class A super-regional malls remain one of the most attractive investments available today,” said David Morrison, CIO-Americas, CBRE Global Investors, in a prepared statement. “These assets have a historic track record of material outperformance, dominating their retail catchment within their submarkets, and we expect that assets of this quality and scale should maintain that advantage going forward.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
