K.C. Plaza Portfolio Sells for $660M
- Mar 03, 2016
By Keith Loria, Contributing Editor
Kansas City, Mo.—A joint venture between Taubman Centers Inc., and The Macerich Co. has acquired Country Club Plaza, a portfolio of office and retail space in Kansas City, Mo., for $660 million from Highwoods Properties.
“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,” Robert Taubman, Taubman Centers chairman, president & CEO said in a company release. “This purchase is consistent with our strategy to own high quality, dominant assets in great markets.”
Originally constructed in 1922, Country Club Plaza is an iconic, 15-block, 1.3 million-square-foot mixed-use retail and office property. The retail segment of the property includes 804,000 square feet of gross leasable area (GLA) featuring 45 unique-to-market tenants, with a roster that includes Apple, H&M, Tesla and Lululemon. The 468,000-square-foot office portion is comprised of the 10-story Valencia tower, which serves as the worldwide headquarters of Lockton Cos., and additional office space located above ground-level retail.
“This investment represents the latest example of Macerich’s continuing strategy of recycling capital out of slower-growth assets, including Panorama Mall which we recently sold for $100 million, into truly irreplaceable, market-dominant centers with stronger growth prospects,” Arthur Coppola, Macerich chairman & CEO, said. “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.”
Highwoods Properties’ remaining assets in Kansas City consist of two wholly-owned office buildings totaling 149,000 square feet, a 50 percent interest in Plaza Colonnade LLC, a 12.5 percent interest in 4600 Madison Associates LP, and a 26.5 percent interest in Kessinger/Hunter & Company LC.
In recent years, Highwoods has become more focused on expanding its portfolio with trophy properties located in cities of the Southeast and East Coast, including Atlanta, Nashville, Raleigh and Pittsburgh.