Macerich Acquires Malls in Santa Barbara, Victorville
The Macerich Co. of Santa Monica, Calif., has added two regional shopping centers to its growing retail portfolio. The real estate investment trust has agreed to acquire La Cumbre Plaza in Santa Barbara, Calif., and The Mall of Victor Valley in Victorville, Calif., for $151.3 million.
La Cumbre Plaza is a 494,000-square-foot Mediterranean-themed, open-air regional mall anchored by Sears and Robinson-May. Other tenants include Ann Taylor, Talbots, William-Sonoma and Pottery Barn. The center is approximately 94 percent occupied and has annual sales of $369 per square foot.
The Mall of Victor Valley is a 507,000- square-foot center anchored by JCPenney, Harris, Sears and Mervyn’s. The mall also houses a 28,000-square-foot Cinemark Theater, which is undergoing an expansion. Annual sales at Victor Valley run $370 per square foot. The center is 96 percent leased.
Macerich Chief Executive Officer Arthur Coppola said the company was attracted to the malls primarily for their locations and undervalued rents. La Cumbre takes advantage of Santa Barbara’s attractive demographics. It is also close to other Macerich properties— The Oaks in Thousand Oaks, Calif., and Pacific View in Ventura, Calif.—which could make for synergistic leasing strategies, Coppola said. Victor Valley has undervalued rents and, with tenant sales up 17 percent this year, is the dominant market player in the high desert. It also has expansion potential, Coppola added.
Macerich projects the properties will generate about $11 million in profits during their first year. The company assumed a $54 million loan for the Victorville property and a $30 million loan for the Santa Barbara center.
Macerich focuses on acquisition, leasing, management, development and redevelopment. The company now operates 62 shopping centers, including the Westside Pavilion, Santa Monica Place and the Northridge Mall in Southern California.
—R.M.
