Macerich Announces the Acquisition of Two California Regional Malls
July 23 2004 - 7:00AM
PR Newswire (US)
Macerich Announces the Acquisition of Two California Regional Malls
SANTA MONICA, Calif., July 23 /PRNewswire-FirstCall/ -- The
Macerich Company (NYSE:MAC) today announced that it acquired La
Cumbre Plaza in Santa Barbara, California and the Mall of Victor
Valley in Victorville, California. La Cumbre Plaza is a 494,00
square foot Mediterranean themed, open-air regional mall anchored
by Sears and Robinson-May. It also features notable tenants such as
Ann Taylor, Talbots, William-Sonoma and Pottery Barn. The center is
approximately 94% occupied. The specialty store annual sales per
square foot are approximately $369. The Mall of Victor Valley is a
507,000 square foot regional mall anchored by JC Penney, Harris,
Sears and Mervyn's. In addition, there is a 28,000 square foot
Cinemark Theater and a Barnes and Noble. The specialty tenant sales
per square foot are approximately $370 on an annual basis and the
occupancy level is approximately 96%. Tenant sales per square foot,
in this rapidly growing trade area, have increased almost 6% per
year on a compounded annual basis from 1997 through 2003 and are up
17% year to date through May 2004. Plans are currently underway to
expand the Cinemark Theater to approximately 65,000 square feet.
The mall is located in the Inland Empire, one of California's
fastest growing regions. The combined total purchase price for both
properties was $151.3 million. Projected first year net operating
income from the two properties combined is $10.9 million. Included
in the purchase price is an existing loan on Victor Valley of $54
million at 5.25% maturing in March 2008. Concurrent with the
closing of La Cumbre, a $30 million floating rate loan was placed
on the project with an initial interest rate of 2.29%. Commenting
on the acquisitions, Arthur Coppola, President and Chief Executive
Officer of Macerich stated, "We are very pleased to add these well
located, Southern California malls to our portfolio. Victor Valley
is a dominant regional mall in its trade area with in-place rents
substantially below market and strong potential for growth through
expansion. The center has had very significant tenant sales growth
over the past five years. La Cumbre Plaza is also extremely well
located and benefits from the tremendous demographics of Santa
Barbara. The centers proximity to Pacific View Mall and The Oaks
Mall will provide us with excellent regional leasing synergies."
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 81% ownership interest in The
Macerich Partnership, L.P. Macerich now owns approximately 62
million square feet of gross leaseable area consisting primarily of
interests in 62 regional malls. Additional information about The
Macerich Company can be obtained from the Company's web site at
http://www.macerich.com/. 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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