Officials at Indianapolis-based retail giant Simon Properties Group mentioned late last year they planned to put up their Riverway and O'Hare International Center, which total 1.3 million sf, early this year. However, CEO David Simon said recently the company is not ready to pull the trigger on putting the properties on the market just yet.
"Eventually, when we anticipate the office market getting firmer, we'll look to sell our office assets, the primary one being Riverway," Simon says in an earnings conference call. "But now our feeling is the market is a little soft and we'll wait for it to firm up."
The two assets are the only office properties in Simon Property Group's portfolio. Vacancy is about 20% at the two-building Riverway complex at 6133 N. River Rd. and 9399 W. Higgins Rd. Simon Property Group also has a $110-million mortgage on the 818,860-sf Riverway. It owns the 495,570-sf O'Hare International Center at 10255 W. Higgins Rd., where vacancy is less than 8%, free and clear.
"Ultimately of the office market isn't a long-term strategic fit for us," Simon explains. "We're interesting in timing the market a little bit better. We've already missed the timing once or twice, so we're waiting to time it right the next time."
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.