Rouse Snaps Up VA, MD Malls for $293M

RICHMOND, VA-Rouse Properties Inc. has expanded its reach into Virginia and Maryland via the purchase of Chesterfield Towne Center here and the Centre at Salisbury in Salisbury, MD, both from affiliates of the Macerich Co. The New York City-based shopping center REIT said late Wednesday afternoon that it paid a total of $292.5 million for the two properties, including the assumption of debt.

The larger of the two properties at just over one million square feet, Chesterfield Towne Center serves a trade area of more than 550,000 people. Built in 1975 and last renovated in 2008, it's anchored by Macy's, Sears, JCPenney and Garden Ridge, with a tenant roster that also includes Victoria's Secret, Loft, francesca's collections, ULTA and Bath & Body Works.

Rouse assumed an existing $109.7-million non-recourse loan on Chesterfield Towne Center with a 4.75% interest rate and an October 2022 maturity date. Industry data indicate that the REIT paid a total of $187.1 million for the property.

The 862,000-square-foot Centre at Salisbury is reportedly the only enclosed mall for over 55 miles serving a trade area of over 330,000 people across nine counties in Maryland, Virginia and Delaware. It opened in 1990 and was renovated in 2010. The mall is anchored by Macy's, Boscov's, Sears, JCPenney and Dick's Sporting Goods, and there's also a 16-screen Regal Cinemas movie theater on a 72,000-square-foot outparcel. Rouse assumed an existing $115.0-million partial-recourse loan with a 5.79% interest rate, due to mature in May 2016.  

“Chesterfield Towne Center and The Centre at Salisbury are key additions to our portfolio of dominant, middle market regional malls,” says Rouse's president and CEO, Andrew Silberfein. “These malls both serve expansive trade areas with limited enclosed mall competition, supporting strong inline and anchor sales volumes. The acquisition will diversify Rouse's geographic presence with Maryland and Virginia representing our 20th and 21st states. We see opportunities at both malls to apply our strong platform to substantially improve the malls' economic metrics, merchandising mix and tenant quality.”

Chesterfield Towne Center is currently 88.1% leased with inline sales of about $360 per square foot. The Salisbury property is currently 93.8% leased; its inline sales average $320 per square foot.