Macerich Completes Purchase of Biltmore Fashion Park
December 19 2003 - 8:00AM
PR Newswire (US)
Macerich Completes Purchase of Biltmore Fashion Park Luxury
Open-Air Center Added to Macerich's Phoenix Portfolio SANTA MONICA,
Calif., Dec. 19 /PRNewswire-FirstCall/ -- The Macerich Partnership
L.P., the operating partnership of The Macerich Company , today
announced the acquisition of Biltmore Fashion Park in Phoenix from
Taubman Centers, Inc. . The property will be owned by a 50/50 joint
venture between Macerich and an institutional investment partner.
The total consideration for the acquisition was approximately
$158.5 million, which was comprised of $51 million in cash, 705,636
Macerich operating partnership units and the assumption of $77.4
million of property level fixed rate debt. Located on 31 acres at
the prime northeast corner of 24th Street and Camelback Road in
Phoenix, Biltmore Fashion Park is a 611,000 square foot open-air
center anchored by Saks Fifth Avenue and Macy's. The center is
currently 90% leased, and shop tenants generate sales of
approximately $470 per square foot. Leading specialty retailers in
the center include Tommy Bahama, Allen-Edmonds, Polo by Ralph
Lauren, Gucci, Escada, Stuart Weitzman, Cole-Hahn, Cartier and
Elizabeth Arden Salon. "The addition of Biltmore Fashion Park to
our Westcor Region portfolio will bring Arizona's two major fashion
malls, including Scottsdale Fashion Square, which is only five
miles away from Biltmore, under common ownership and create even
greater opportunities," said Arthur Coppola, president and chief
executive officer of Macerich. "Historically, there has been
competitive tension between Biltmore and Scottsdale Fashion and
there have been numerous radius clauses imposed by both landlords.
Combining these two properties under common ownership will give us
the opportunity to provide Valley shoppers and tourists the next
tier of quality shopping and the opportunity for specialty shops
and restaurants eager to expand into the Arizona marketplace to
deal in an optimum environment from both the consumers' and the
retailers' viewpoints." The acquisition of Biltmore expands
Macerich's Phoenix portfolio to seven malls with over 8 million
square feet of gross leaseable area generating shop sales in excess
of $420 per square foot. "The timing of this acquisition is
particularly opportune for Macerich since the Phoenix retail
marketplace has enjoyed a very strong 2003 with comparable tenant
sales in our Phoenix portfolio rising 6% in the third quarter
alone." The Macerich Company 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 82% ownership interest in The
Macerich Partnership, L.P. Macerich now owns approximately 59
million square feet of gross leaseable area consisting primarily of
interests in 58 regional malls. Additional information about The
Macerich Company can be obtained from the Company's web site at
http://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, tenant bankruptcies, 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; 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, for a discussion of
such risks and uncertainties. DATASOURCE: The Macerich Company
CONTACT: Arthur Coppola, President and Chief Executive Officer, or
Thomas E. O'Hern, Executive Vice President and Chief Financial
Officer, both of The Macerich Company, +1-310-394-6000 Web site:
http://www.macerich.com/
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