California Shopping Mall Company Expands in Arizona
The Macerich Co., based in Santa Monica, Calif., recently completed its acquisition of the Biltmore Fashion Park from Taubman Centers Inc. The purchase adds another mall to Macerich’s collection of shopping centers in the Phoenix area, which falls under the company’s Westcor Division.
The 40-year-old shopping center, anchored by Saks Fifth Avenue and Macy’s, was sold for $158.5 million. The price tag includes $51 million in cash, 705,636 Macerich operating partnership units and the assumption of $77.4 million of property-level fixed-rate debt.
The property, which generates sales of about $470 per square foot, will be owned by Macerich and an institutional investment partner in a 50-50 joint venture partnership, Macerich officials said.
Leading specialty retailers in the 611,000-square-foot center include Tommy Bahama, Polo by Ralph Lauren, Gucci, Escada, StuartWeitzman, Cole Haan and Cartier.
“The addition of Biltmore Fashion Park to our Westcor region portfolio will bring Arizona’s two major fashion malls—including Scottsdale Fashion Square, which is only five miles away from Biltmore—under common ownership and create even greater opportunities,” said Arthur Coppola, president and chief executive officer of Macerich. “Historically, there has been competitive tension between Biltmore and Scottsdale Fashion, and there have been numerous radius clauses imposed by both landlords.”
Combining the two properties under common ownership gives Macerich the opportunity to expand its top-tier retailers and restaurants at both centers.
Taubman Centers, based in Bloomfield Hills, Mich., purchased the open-air shopping center in 1994 for $115 million but sold it to raise capital to reinvest in its other 31 shopping malls, Taubman officials said.
The Macerich Co., a real estate investment trust, now owns seven malls in the Phoenix area. It also owns several malls in Southern California, including the Westside Pavilion in Los Angeles, Santa Monica Place in Santa Monica and Lakewood Center in Lakewood. —Deborah Belgum
