GREENWICH, CT-Starwood Capital Group and Starwood Retail Partners said Wednesday afternoon that an affiliate has acquired Rimrock Mall in Billings, MT and Northridge Mall in Salinas, CA from Macerich Corp. Terms of the transaction were not disclosed; the two properties were among 17 that Macerich put up for sale in 2012.
The 620,000-square-foot Rimrock is the largest mall in Montana and is currently 95% occupied. Macerich bought it, along with Vintage Fair in Modesto, CA, in 1996, paying $118 million for both. It has owned the one-million-square-foot Northridge, now 91% occupied, since paying $128 million for it in 2003.
“We are very pleased to acquire these two dominant regional malls that are an integral part of the communities they serve,” Starwood Capital VP Jeff Shuster says in a release. He notes that both Rimrock and Northridge have no nearby mall competition, “are well situated in growing trade areas and are assets that will drive strong returns for our investors.”
When Rimrock and Northridge are factored in, together with the malls Starwood acquired last year as well as an additional property now under contract, “Starwood and SRP will now own, lease and provide asset management services for approximately 10 million square feet across several states,” says Scott Wolstein, SRP's chief executive, in the release.
Wolstein cites the company's ability to drive additional operational value into its assets, and expresses confidence that the company “will be able to enhance the shopping experience at these premier properties, and look forward to continuing to grow our portfolio.” The onsite management teams at Rimrock and Northridge will operate the properties under SRP's direction.
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