MAC Macerich Co

Acquisition Gives Macerich Premier Magnificent Mile Address in Chicago SANTA MONICA, Calif., Jan. 10 /PRNewswire-FirstCall/ -- The Macerich Partnership, L.P., the operating partnership of Macerich(R) (NYSE:MAC), and the Alaska Permanent Fund Corporation (APFC) today announced the acquisition of one of Chicago's mixed-use retail jewels -- The Shops at North Bridge -- created by Chicago real estate developer, The John Buck Company. The joint acquisition was arranged by Dallas-based L&B Realty Advisors, LLP (L&B), one of the nation's largest commercial real estate investment management organizations. Located on Chicago's famed Michigan Avenue and producing annual small shop tenant (spaces 10,000 square feet or less) sales of $839 per square foot, The Shops at North Bridge property aligns with Macerich's strategic focus on high-quality retail real estate in the country's most powerful markets. "A clear point of differentiation for Macerich is our focus on cultivating the very best properties in optimal, high-performing markets throughout the country," said Macerich Chief Investment Officer Edward C. Coppola. "Within our national portfolio, we have a dominant presence in many of the nation's top markets -- including Los Angeles, metropolitan New York, Phoenix, the San Francisco Bay Area, and Washington, D.C. The Shops at North Bridge gives us an opportunity to enter Chicago with what we believe is the best retail location in this desirable market. "We're very confident that Macerich will continue our vision for this world-class asset," said John O'Donnell, President and Chief Operating Officer, The John Buck Company. "This acquisition also is an opportunity for Macerich and L&B to expand their partnership with Alaska Permanent Fund Corporation, which operates with a real estate investment philosophy that mirrors both firms' focus on the best properties in the best markets," Coppola continued. This is the second joint venture for the two entities: Macerich and APFC co-own another of the country's top-performing regional shopping centers, Tysons Corner Center in the Capital Region's affluent Fairfax County. "Adding The Shops at North Bridge to our portfolio of real estate assets was an opportunity for us to partner with Macerich, again, in owning and managing an exceptional piece of real estate in a market with exceptional attributes," commented Michael Burns, APFC's Chief Executive Officer. "This acquisition is the perfect complement to our partnership with Macerich." "It is a rare opportunity for our client, APFC, to gain an asset of this pre-eminence while broadening their strategic relationship with Macerich and L&B," said L&B's Director of Acquisitions, Bernadette Mussell. The Shops at North Bridge is a 680,933-square-foot mixed-use retail development anchoring the south end of Chicago's primary retail district known as "The Magnificent Mile." In addition to the four-level shopping center, the transaction includes two parking garages with a combined 1,200 spaces and 133,615 square feet of office space immediately west of the center. The Shops at North Bridge is home to one of the top five performing Nordstrom Department Stores in the country. Currently at an occupancy level of 94.9%, The Nordstrom-anchored Shops at North Bridge features approximately 50 specialty retailers and 20 restaurants. Five hotels, including the luxurious Conrad Hotel and the historic Intercontinental Chicago Hotel, complement the retail development. Considered one of the country's top retail and tourism magnets, Chicago is projected to be the seventh-fastest-growing city in the country. Macerich and APFC acquired the property from a partnership comprised of The John Buck Company, the Morgan Stanley real estate funds and Westfield Group for $515 million. Macerich and APFC assumed the $205 million balance of the existing loan at an interest rate of 4.67% maturing in July 2009. The acquisition of The Shops at North Bridge caps a year in which Macerich completed the most new development and redevelopment projects in the company's history, including the first phase openings of two ground-up regional shopping centers in Arizona and two significant expansions in Arizona and New Jersey. In all, Macerich opened six redevelopment and new development projects in 2007. Over the past 12 months L&B began targeting opportunities in Chicago due to its status as a global market. In addition to North Bridge, other investments include The Pinnacle Retail, The Shops at The Fordham, both on Wabash Street two blocks from North Bridge, and a to-be-developed multifamily high-rise across from River North's highly visible Merchandise Mart on Kinzie Street. Macerich is a fully integrated self-managed and self-administered real estate investment trust, which focuses on the acquisition, leasing, management, development and redevelopment of regional malls throughout the United States. The company is the sole general partner and owns an 85% ownership interest in The Macerich Partnership, L.P. Macerich now owns approximately 76 million square feet of gross leaseable area consisting primarily of interests in 71 regional malls. Additional information about Macerich can be obtained from the Company's Web site at http://www.macerich.com/. The Alaska Permanent Fund was created by referendum in 1976 to save a portion of the state's oil revenue for the future. The Fund is currently worth approximately $39 billion. In 1980, the Alaska State Legislature created the Alaska Permanent Fund Corporation to manage the investments of the Permanent Fund outside of the State Treasury. The Fund is invested in a diverse portfolio of assets, including U.S. and non-U.S. fixed income securities, equities and real estate, as well as infrastructure, absolute return and private equity investments. A portion of the Permanent Fund earnings are distributed to eligible Alaskans, and these dividends have ranged from $331 in 1984 to $1964 in 2000. In the fall of 2007 dividends of $1,654 were paid to more than 600,000 Alaskans. L&B provides real estate advisory and management services to institutional investors and individual clients, including: portfolio management, acquisitions, asset management, construction services, and property management. The company manages a portfolio of more than 19 million square feet of office, retail, medical, industrial and multifamily properties valued at $3.6 billion. Note: This release contains statements that constitute forward-looking statements. Stockholders are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks, uncertainties and other factors that may cause actual results, performance or achievements of the Company to vary materially from those anticipated, expected or projected. Such factors include, among others, general industry, economic and business conditions, which will, among other things, affect demand for retail space or retail goods, availability and creditworthiness of current and prospective tenants, anchor or tenant bankruptcies, closures, mergers or consolidations, lease rates and terms, interest rate fluctuations, availability and cost of financing and operating expenses; adverse changes in the real estate markets including, among other things, competition from other companies, retail formats and technology, risks of real estate development and redevelopment, acquisitions and dispositions; governmental actions and initiatives (including legislative and regulatory changes); environmental and safety requirements; and terrorist activities which could adversely affect all of the above factors. The reader is directed to the Company's various filings with the Securities and Exchange Commission, including the Annual Report on Form 10-K for the year ended December 31, 2006, for a discussion of such risks and uncertainties which discussion is incorporated by reference. DATASOURCE: Macerich CONTACT: Edward C. Coppola, chief investment officer or Thomas O'Hern, executive vice president and chief financial officer, +1-310-394-6000, or media, Anita Walker, +1-602-953-6550, all of Macerich; or John O'Donnell, president, chief operating officer of The John Buck Company, +1-312-441-4113 Web site: http://www.macerich.com/

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