Rouse Buys Greenville Mall for $50M

CHARLOTTE—Rouse Properties has acquired Greenville Mall, in Greenville, NC. Rouse paid about $50.25 million for the retail asset.

Greenville Mall spans about 460,800 square feet and is located in eastern North Carolina, about 80 miles east of Raleigh. Greenville is the only enclosed regional mall within a 40-mile radius and serves a multi-county trade area of more than 400,000 people.

“The purchase of Greenville Mall is a perfect fit for Rouse's acquisition program, as we continue to add to our growing portfolio of dominant, middle market regional malls,” says Andrew Silberfein, president and CEO of Rouse. Opened in 1966 and renovated in 2001, the mall is anchored by Belk Ladies, Belk Men & Home, J.C. Penney, and Dunham's Sports (opening late 2013).

National retailers such as Victoria's Secret, Buckle, American Eagle, Aeropostale, Bath and Body Works, and Footlocker are also tenants. The mall is 95.5% leased with average inline sales of $375 per square foot.

“With strong in-line sales, low occupancy costs and the dominant competitive position afforded by being the only mall serving the marketplace, this asset presents another opportunity for Rouse to apply our platform to significantly improve the economic metrics, tenant quality and sales productivity of the asset,” Silberfein says.

The mall was acquired in an off-market transaction from a private partnership managed by Gregory Greenfield & Associates. Rouse assumed an existing $41.7 million non-recourse loan, with a 5.29% interest rate and a December 2015 maturity date.

Greenville is the economic hub of the central and northern areas of eastern North Carolina. The area enjoys a diversified employment base supported by education, healthcare, and manufacturing. Greenville is also home to East Carolina University, the second largest university in the state with over 27,000 students and 5,000 faculty and staff. Vidant Medical Center, one of four academic medical centers in North Carolina, is located three miles from the mall and provides services to more than 1.4 million people a year.