Majority Stake in 1.7M-SF Mall Changes Hands
BROOMFIELD, CO-Those who follow @GlobeStcom on Twitter and @GlobeStLIVE may have seen a post teasing the announcement, but GlobeSt.com has learned that GI Partners has sold its 75% ownership stake in FlatIron Crossing, a 1.7-million-square-foot class-A regional mall here to its joint venture partner, Macerich, the Los Angeles-based public REIT. GI Partners invested in FlatIron Crossing in 2009, acquiring its 75% interest in the mall from Macerich, who remained the operating partner in the venture.
According to a prepared statement, the sale of FlatIron Crossing generated a return of approximately two times invested capital and over a 25% gross internal rate of return to limited partners of GI Partners Fund III LP. Rick Magnuson, executive managing director of GI Partners, says in a prepared statement that the company “structured a transaction with Macerich after the financial markets collapsed to align our interests and collaboratively navigate the downturn by securing the long-term tenancy of numerous marquee tenants.” He adds that “Macerich is well-positioned to continue developing the amenities of this dominant North Denver mall for sustained long-term growth and success.”
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Sources involved in the deal did not respond to further GlobeSt.com queries by deadline, but according to Macerich’s earnings statement, the purchase price was $196 million in cash plus the assumption of a pro rata share of the debt of $127 million. The FlatIron Crossing mall tenant annual sales per square foot are $531, according to the statement.
Developed in 2000 by a Macerich subsidiary, FlatIron Crossing is an enclosed mall serving the north Denver market. The mall is anchored by retailers including Nordstrom, Dillard's, and Macy's, as well as junior anchors Dick's Sporting Goods, Crate & Barrel, and The Container Store, and is also joined by more than 200 shops and restaurants. In addition to its retail tenants, the property houses 30 acres of parks landscaped with native plants, streams, waterfalls, and trails that enhance the Colorado shopping experience.
Macerich has been busy lately. As GlobeSt.com previously reported, Macerich Cos. recently snatched up two of the largest malls in the New York metropolitan area. The company acquired the Kings Plaza Mall in Brooklyn and the Green Acres Mall in Valley Stream, NY, for approximately $1.25 billion, as GlobeSt.com reported.
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