Neiman Marcus has signed a long-term ground lease for the property at the corner of South Main Street and Mount Diablo Boulevard. Macerich is developing the building, which will place some existing structures. The new store is slated to open in late 2010 or early 2011.
As of March, the existing structures to be demolished were leased. A source with Macerich at that time told GlobeSt.com that it was working with those tenants to see how they may be accommodated at the mall, which is better than 95% leased. The source did know how much leasable space was being torn down, but said it was less than 100,000 sf because the Neiman Marcus store will have a partial second story and the existing structures do not.
Macerich, which owns approximately 77 million sf of gross leasable area in 72 regional malls, says sales at Broadway Plaza top $760 per sf. The figure is based on reports by retailers that have leased less than 10,000 sf of mall or freestanding store space for at least 12 months, which would exclude all anchor and junior anchor tenants but covers all specialty retail space. Recently signed rents for specialty retail space are averaging $47 per sf per year across its portfolio while expiring rents are averaging $34.87, according to SEC filings.
In July, Macerich entered into a commitment for a $150 million, seven-year, 6.11% fixed interest rate loan on Broadway Plaza. The loan is expected to close in September, and part of the proceeds will be used to pay off the current loan of $59 million (with a 6.68% interest rate).
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