Macerich Buys 11 Federated Locations

SANTA MONICA, CA-The Macerich Co. has agreed to buy 11 Federated Department Store sites in California, Arizona and Connecticut from the Cincinnati-based company in a deal that the REIT expects to close in July. The stores are all duplicates as a result of the Federated-May Co. merger.

The 11 Federated sites include 10 in regional centers owned by Macerich, which makes the transaction "a strategic move that gives us important control over future redevelopment" at the centers, company president Arthur Coppola says. Acquiring the properties "will speed planned redevelopments at a number of our key centers," Coppola says.

Financial terms of the agreement with Federated were not disclosed. Macerich is expected to discuss the price and other details of the deal during the company's quarterly earnings conference call, which is scheduled for Tuesday.

In California, the stores are at the Inland Center in San Bernardino, Lakewood Center Mall in Lakewood, Los Cerritos Center in Cerritos, Pacific View Mall in Ventura, Santa Monica Place in Santa Monica and two stores at the Oaks Shopping Center in Thousand Oaks.

In Arizona, the locations include the Fiesta Mall in Mesa, the Paradise Valley Mall in Phoenix and Scottsdale Fashion Square in Scottsdale. The remaining store is at the Danbury Fair Mall in Danbury, CT.

Five of the stores are Macy's and five are Robinsons-May; the store in Danbury is a Filene's. All of the Macerich malls include Macy's stores and all of the 10 affected mall properties generate average sales per sf of nearly $500, Macerich says.

Coppola cites the "growing appeal of the Macy's brand and Macy's efforts to elevate the overall department store experience." The Macerich president names a number of possibilities for redevelopment of the sites, including new Nordstrom stores, additional outdoor lifestyle elements, or even mixed use.