Westfield Sells Two NE Ohio Malls to Starwood Capital Group
- Sep 23, 2013
Two shopping malls in Northeast Ohio will have a new owner by the end of the year. The two properties are part of a portfolio the Sydney-based Westfield Group agreed to sell to an affiliate of Starwood Capital Group, the private investment firm headquartered in Greenwich, Conn.
The Great Northern mall in North Olmsted and Belden Village in Canton are part of a portfolio that also includes Toledo’s Franklin Park; two California shopping centers, the Parkway and West Corvina, in El Cajon and West Corvina, respectively; the Southlake in Merrillville, Ind.; and the Capital in Olympia, Wash.
Great Northern has 1.2 million square feet of selling space. It is undergoing an expansion project that will bring a new movie theater, restaurants, reconfigured retail space and a new main entrance. The project is expected to be completed by the end of the year.
Located just off Interstate 77, Belden Village is the second-smallest property in the portfolio, with 826,000 square feet of retail space. Starwood Capital already owns a shopping center in Northeast Ohio, Strongsville’s SouthPark, a property that the investment firm acquired last year.
The Westfield Group will sell the 7.9 million-square-foot portfolio for $1.6 billion, $120 million less than the book value of the assets as of Dec. 31, 2012. The deal is expected to close in the fourth quarter of 2013.
“Today’s announcement continues the implementation of our strategic plan, which positions WDC to generate greater shareholder value,” Peter Lowy, co-CEO of the Westfield Group, said in a statement for the press. “We are focused on redeploying our capital into superior retail destinations in major cities through divesting of non-core assets and introducing joint venture partners into our high-quality portfolio of assets,” he added.
Charts courtesy of Marcus & Millichap.