Rouse Properties Acquires 51% Interest in Tupelo, Miss., Mall
- Sep 03, 2014
By Keith Loria, Contributing Editor
Rouse Properties has entered into a joint venture with David Hocker & Associates Inc. to acquire The Mall at Barnes Crossing, a 670,000-square-foot enclosed regional mall in Tupelo, Miss.
Rouse acquired a 51 percent interest in the properties and will act as managing member for the venture. The joint venture also includes the purchase of Market Center, a 60,000-square-foot strip shopping center located adjacent to the property.
“The acquisition represents Rouse’s 36th mall and 23rd state and is consistent with the company’s goal to continue to upgrade and diversify its asset base across the country,” Andrew Silberfein, Rouse Properties’ president & CEO, said in a company statement. “The combination of Rouse’s national platform and Hocker’s experience and proven track record will enable us to drive revenue and sales productivity and optimize the merchandising mix at the properties.”
In its second quarter report, released in August, Rouse reported funds from operations at $15.2 million, compared to $5.9 million last year. The firm has a track record for renovating malls. In May, it acquired the Bel Air Mall in Mobile, Ala., for $135 million. Silberfein said in a conference call last month that the mall would undergo cosmetic renovation, including improvements to some of the entrances.
The Mall at Barnes Crossing is expected to follow in that pattern.
Located at 1001 Barnes Crossing Road, the mall is anchored by Belk, Belk Men’s and Home Store, jcpenney, Sears, Dick’s Sporting Goods, Barnes & Noble and an eight-screen Cinemark movie theater. It also features a strong roster of national retailers such as Victoria’s Secret, Ann Taylor Loft, Chico’s, Buckle, Bath & Body Works and Ulta.
At the time of the sale, the property was 94.1 percent leased, with strong inline sales of approximately $360 per square foot and low occupancy costs. Market Center, the strip center adjacent to the mall, is anchored by Gap, Old Navy and Shoe Carnival.
In conjunction with the transaction, the joint venture closed on a new, 10-year, $67 million non-recourse loan with an interest rate of 4.29 percent.
The Mall at Barnes Crossing serves a trade area of more than 450,000 people.