Macerich Sells Kohl's Properties for $51M

Faris Lee did not disclose the value of the deals or that the locations were formerly Mervyn's stores. The latest quarterly report filed by Macerich, however, states that, "During the period of July 15, 2009 through July 30, 2009, the company sold five of the Mervyn's stores for approximately $50.8 million in total proceeds." The five former Mervyn's stores were among 23 for which Kohl's and Forever 21 assumed the leases after the Mervyn's bankruptcy.

The four California properties that sold are located in Redondo Beach, Monrovia, Rancho Cordova and Eureka; the Nevada location is in Henderson.

Macerich was represented by president Richard Walter and senior managing director Donald MacLellan of Faris Lee, which also represented the buyers in all of the deals except the Eureka sale. Walter says that the all-cash sales demonstrate that "there continue to be well-capitalized investors in the market," while MacLellan observes that single-tenant retail investments continue to perform despite a challenging retail market. "The fact that we were able to bring together such a diverse collection of buyers including a 1031 exchange buyer, pension fund, private equity and family trust underscores the intrinsic value of these long-term Kohl's-anchored properties," he says.

The Redondo Beach property was acquired by Los Angeles-based ING Clarion, which issued a news release early this month saying that it paid $17.25 million for the property, which is an 82,957-square-foot building on 4.58 acres at 1799 Hawthorne Blvd. and is an anchor tenant of the South Bay Galleria Mall. The Monrovia and Rancho Cordova properties were both acquired by Phoenix-based Cole Real Estate Investments. The Monrovia location is a 76,804-square-foot building on 6.47 acres at 504 W. Huntington Dr. that is an anchor tenant of the Huntington Oaks Shopping Center, a 250,000-square-foot community shopping center. The Rancho Cordova property is a 76,158-square-foot building on 6.66 acres at 11051 Olson Dr. and is an anchor tenant of Zinfandel Square in the eastside region of Sacramento.

The Eureka property was acquired by Los Angeles-based Stearns Trust, which was represented by Phase One Realty. It is a 76,158-square-foot building on 6.66 acres at 3300 Broadway St. and is an anchor tenant of Bayshore Mall, a 730,000-square-foot regional mall. The Henderson property was acquired by Nevada-based Williamson Trust, the 1031 exchange buyer, and is an 86,098-square-foot building on 5.64 acres at 1316 W. Sunset Rd. It is an anchor tenant of Galleria at Sunset, a 1.1 million-square-foot super regional mall.