Located a few minutes from Interstate 5 at the junction of Delta Highway and Valley River Drive, Valley River Center originally opened in 1969 and was expanded in 1974 and 1989. The mall is anchored by Meier & Frank (181,000 sf), Macy's (124,000 sf) and J.C. Penney (218,000 sf). The mall includes 254,000 sf of mall shop space producing annual sales of $420 per sf. A 15-screen Regal Cinema is in the planning stage. Grosvenor will continue to own certain out parcels adjacent to the mall, according to the agreement. Macerich estimates its first-year return on investment to be 6.6%.
Given Federated's post-May Co. acquisition strategy to convert all May Co. department stores (including Meier & Frank stores) to the Macy's brand and close duplicate locations, one of the mall's anchors likely is on its way out. An executive with The Macerich Partnership LP did not return a phone call seeking comment on that and other issues, such as shop space occupancy.
Santa Monica, CA-based Macerich is the sole general partner and owns an 82% ownership interest in The Macerich Partnership. Macerich now owns approximately 79 million sf of gross leaseable area in 75 regional malls.
The agreement with Macerich comes one year to the month after Grosvenor handed it the management assignment for the property. General Growth Properties previously had the assignment.
The acquisition will give Macerich two properties in Oregon. The other is Washington Square, a 1.2-million-sf mall near Interstate 5 in Tigard. Macerich owns that mall in a joint venture with Cadillac Fairview Corp. Ltd.
© 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.