SANTA MONICA, Calif.,
Feb. 28, 2011 /PRNewswire/ --
Macerich® (NYSE: MAC), one of the nation's leading owners,
operators and developers of commercial real estate, and joint
venture partner Institutional Mall Investors, LLC ("IMI") today
announced the acquisition of full ownership of Arizona's Kierland Commons from its
developers, Dallas-based Woodbine
Development Corporation and the Herberger Interests of Phoenix/Scottsdale.
To recap the history of this transaction, in January 2005, Macerich formed a 50/50 joint
venture with IMI to acquire a 49% interest in Kierland Commons from
Woodbine Development Corporation and the Herberger Interests,
giving Macerich and IMI each a 24.5% interest in the asset. Today's
announcement gives the joint venture full ownership in Kierland
Commons, 50% to Macerich and 50% to IMI. Macerich will continue to
manage and lease the retail component as it has since 2005.
In acquiring 50% ownership of the property, Macerich's share of
the purchase price included $34.2
million of cash, in addition to assuming a pro rata share of
debt of $18.6 million.
Located on Arizona's dominant
Scottsdale Road corridor, Kierland Commons, which opened in 2000,
is a 38-acre mixed-use retail-anchored development that produces
annual small shop tenant (spaces 10,000 square feet or less) sales
of $625 per square foot (as of
December 31, 2010). Occupancy for the
project's 316,000 square feet of retail space is 98%.
"Macerich is recognized as having a portfolio of exceptional
quality in desirable markets across the country – one of the
highest quality portfolios in the industry – and Kierland Commons
certainly reflects that continued focus on cultivating the very
best real estate in the industry," said Ed
Coppola, president of Macerich. "We have enjoyed a strong
partnership with Woodbine, and the opportunity to further invest in
a property of this caliber reflects our continued focus on
exceptional real estate and markets that deliver significant
value."
"Kierland Commons is widely recognized as the benchmark for
retail-anchored mixed-use development, and many projects have tried
to emulate its success but none have the advantages that Kierland
Commons has in its location, its tenant mix, architectural design
and proximity to a world-class resort," said Buzz Gosnell,
president of Woodbine Southwest. "We are very proud of this project
and feel confident Macerich will continue to stay the course with
our vision."
Kierland Commons is a 600,000-square-foot Main Street
development that incorporates 70 upscale retailers, 14 restaurant
concepts, entertainment venues, office space and 84 luxury loft
condominiums in The Plaza Lofts at Kierland Commons. The
urban-inspired mixed-use destination was the recipient of the 2009
Award of Excellence from the Urban Land Institute and the 2010
winner of an Environmental Excellence Award in the category of
Livable Communities/Sustainable Communities from Arizona's Valley Forward Association.
Retailers at the property include 7 for All Mankind,
Anthropologie, Barnes and Noble, BCBGMAXAZRIA, Coach, Crate and
Barrel, J.Crew, Juicy Couture, Michael Kors and Victoria's Secret. Notable restaurants include
Ocean Club, Tommy Bahama's
Restaurant & Bar, Ra Sushi, Cheesecake Factory, North, Bar
North and The Greene House. Three four- and five-star resorts are
located within three miles of the property and Scottsdale Fashion
Square, the state's retail flagship and also owned by Macerich and
IMI, is located approximately eight miles south.
About Macerich
Macerich (NYSE: MAC) 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. Macerich now owns approximately 73 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 website at www.macerich.com.
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; the liquidity of real estate investments,
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, 2009 and the Quarterly Reports on
Form 10-Q, for a discussion of such risks and uncertainties, which
discussion is incorporated herein by reference. The Company does
not intend, and undertakes no obligation, to update any
forward-looking information to reflect events or circumstances
after the date of this release or to reflect the occurrence of
unanticipated events unless required by law to do so.
About Institutional Mall Investors LLC
Institutional Mall Investors LLC ("IMI") is an investment
platform jointly owned by the California Public Employees'
Retirement System ("CalPERS") and an affiliate of Miller Capital
Advisory, Inc. ("MCA"). As of year end 2010, IMI owned interests in
19 retail and mixed-use properties encompassing nearly 19 million
square feet of retail and office area. MCA, a Registered Investment
Advisor, serves as non-member manager of IMI. Additional
information about CalPERS is available online at www.calpers.com.
Additional information about IMI and MCA is available at
www.miller-capital.com.
About Woodbine
Woodbine Southwest Corporation is a custom developer of projects
uniquely tailored to suit the needs and style of the surrounding
community. The 730-acre Kierland master-planned community, Woodbine
Southwest's flagship project, contains Kierland Commons, the highly
acclaimed Main Street-style development on the border of
Northeast Phoenix and Scottsdale, as well as The Plaza Lofts at
Kierland Commons. Woodbine Southwest is an affiliate of
Dallas-based Woodbine Development
Corporation. Additional information is available at
http://www.woodbinedevelopment.com/.
Web sites:
http://www.macerich.com
http://www.woodbinedevelopment.com
http://kierlandcommons.com
SOURCE Macerich