Macerich Builds East Coast Presence
The Macerich Co., a real estate investment trust in Santa Monica, Calif., has agreed to acquire Rochester, N.Y.–based real estate investment trust Wilmorite Properties Inc. for $2.3 billion.
The transaction will give Macerich control over Wilmorite’s portfolio, which features 13 regional shopping centers located in the Northeastern region of the United States. Among them is the high-profile Tyson’s Corner center in McLean, Va., which is anchored by Bloomingdale’s, Lord & Taylor and Hecht’s. Tyson’s Corner; the Freehold Raceway Mall in Freehold, N.J.; and the Danbury Fair Mall in Danbury, Conn., together reap more than $525 in sales per square foot annually, according to Wilmorite.
As part of the agreement, Macerich will assume $882 million in debt. Both companies’ boards of directors have approved the transaction, expected to close in March 2005.
After the acquisition, Macerich will control a total of 74 regional malls, making up 75.4 million square feet of retail space.
“This portfolio is particularly appealing due to the strong internal growth we expect from these assets,” Macerich Chief Executive Arthur Coppola said in a statement. “Furthermore, there are significant expansion and redevelopment opportunities at Tyson’s and Freehold.”
—Robert McAllister
