Macerich Sells Two Regional Malls for $170M
- Jan 23, 2017
By Veronica Grecu
Santa Monica, Calif.—True to its strategy of recycling capital out of non-core assets, shopping centers owner and operator Macerich has announced the disposition of two U.S. malls. Private real estate investment firm Merlone Geier Partners picked up Cascade Mall in Burlington, Wash., and Northgate Mall in San Rafael, Calif., for a combined $170 million. The retail properties have occupancy rates of 86.5 percent and 94.9 percent and, as of September 2016, generated sales per square foot of $319 and $421, respectively. By comparison, Macerich’s portfolio—which comprises 54 million square feet in 48 regional shopping centers—averaged $626 per square foot in sales and 95.3 percent occupancy as of the end of Q3 2016.
According to a press statement announcing the sale, the transaction resulted in net proceeds of approximately $100 million after Macerich paid off a floating-rate on Northgate Mall.
Built in 1990 by Winmar Co., Cascade Mall is located at 201 Cascade Mall Drive. The 595,000-square-foot shopping venue is occupied by a long list of national and regional retailers such as Applebee’s, Bath & Body Works, Claire’s, Just Sports, Macy’s, Officemax, Radio Shack, Sears, Victoria’s Secret and many others.
Northgate Mall is located at 5800 Northgate Parking Lot, roughly 15 miles north of the Golden Gate Bridge. The mall opened in 1966 as an open-air shopping venue and was originally owned by M&T Properties. In 1985, the property was acquired by Macerich, who enclosed the mall as part of a major renovation process in 1987. Northgate Mall is currently anchored by Macy’s, Sears and Kohl’s.
Image via Northgate Mall’s Facebook page