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WALNUT CREEK, CA-Macerich is gearing up to demolish existing structures at one end of its 700,000-sf Broadway Plaza mall here to make room for a 100,000-sf Neiman Marcus department store. A source at Santa Monica, CA-based Macerich tells GlobeSt.com that Dallas-based Neiman Marcus has signed a long-term ground lease for the property and will develop the store itself once Macerich clears the site.

Joining Macy’s and a soon-to-be expanded Nordstrom store as anchor tenants, Neiman Marcus will be located at the corner of South Main Street and Mount Diablo Boulevard. Macerich is currently working with the City of Walnut Creek to secure all necessary approvals for pre-construction to begin as early as fall 2008. The new store is slated to open in late 2010 or early 2011.

The structures to be razed to make room for the new store are currently leased. The Macerich source tells GlobeSt.com it is “currently working with those tenants” to see how they may be accommodated at the mall, which is better than 95% leased. She 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 owns Broadway Plaza in partnership with Northwestern Mutual Life of Milwaukee, WI. The company owns approximately 76 million sf of gross leasable area in 71 regional malls.

Macerich 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.

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