Rouse Properties Acquires Two Malls For $292.5M
Rouse Properties (NYSE: RSE), a national owner and operator of enclosed regional malls, today announced the acquisition of Chesterfield Towne Center, in Richmond, Virginia, and The Centre at Salisbury, in Salisbury, Maryland, for a total purchase price of approximately $292.5 million, excluding transaction costs.
“Chesterfield Towne Center and The Centre at Salisbury are key additions to our portfolio of dominant, middle market regional malls,” said Andrew Silberfein, president and chief executive officer of Rouse Properties. “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 a 1,018,000 square foot regional mall located in Richmond, Virginia. The mall is situated along the most vibrant retail corridor in Chesterfield County, a high growth, affluent submarket with average household income in a five-mile radius of $101,000. As the preferred shopping destination south of the James River, the mall serves a trade area of over 550,000 people. Chesterfield Town Center opened in 1975 and was renovated in 2008. The mall is anchored by Macy's, Sears, jcpenney and Garden Ridge and features retailers such as Victoria's Secret, Loft, francesca's collections, ULTA and Bath & Body Works. The center is currently 88.1% leased with average inline sales of approximately $360 per square foot. Rouse assumed an existing $109.7 million non-recourse loan with a 4.75% interest rate and an October 2022 maturity date.
The Centre at Salisbury is an 862,000 square foot regional mall located in Salisbury, Maryland. The mall enjoys a dominant competitive position as 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. The Centre at Salisbury opened in 1990 and was renovated in 2010. The mall is anchored by Macy's, Boscov's, Sears, jcpenney and Dick's Sporting Goods. A 16-screen Regal Cinema occupies a 72,000 square foot outparcel and is complemented by several restaurant offerings such as LongHorn Steakhouse, Olive Garden, Red Lobster, Ruby Tuesday and Famous Dave's BBQ. The center is currently 93.8% leased with average inline sales of approximately $320 per square foot. Rouse assumed an existing $115.0 million partial-recourse loan with a 5.79% interest rate and a May 2016 maturity date.
The malls were acquired from certain affiliates of The Macerich Company.
About Rouse Properties
Rouse Properties, Inc. (NYSE: RSE) is a publicly traded real estate investment trust headquartered in New York City and was founded on a legacy of innovation and creativity. Among the country's largest publicly traded regional mall owners, the Company's geographically diverse portfolio spans the United States from coast to coast, and includes 34 malls in 21 states encompassing 23.4 million square feet. For more information please visit: www.rouseproperties.com.
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