Kohl's Properties Sell for $51m
Santa Monica, Calif.–based real estate company Macerich has sold five retail properties occupied by Kohl’s Department Stores in California and Nevada for a reported $51 million, according to Irvine, Calif.–based broker Faris Lee Investments and other real estate sources.
The properties formerly housed Mervyns stores that Macerich bought when the retailer went bankrupt. The buildings are all part of malls or shopping centers and were sold to different buyers. Los Angeles–based ING Clarion bought the Kohl’s building located in The Galleria at Redondo Beach in Redondo Beach, Calif., while Phoenix-based Cole Investments bought properties at the Huntington Oaks Shopping Center in Monrovia, Calif., and in Zinfandel Square in Rancho Cordova, Calif. Los Angeles–based Stearns Trust bought the property located in the Bayshore Mall in Eureka, Calif. The Williamson Trust bought the Kohl’s building located in the Galleria at Sunset in Henderson, Nev. Kohl’s has leases on the properties through 2028. Some of the stores have yet to open. The Rancho Cordova store, located near Sacramento, Calif., will open next month.
Faris Lee executives said the properties were offered separately and as part of a package and heavily marketed in order to maximize returns for Macerich during a tough economic climate. Given the crunch on credit markets, most of the buyers paid cash for the properties.
“Single-tenant retail investments continue to perform despite a challenging retail market. The fact that we were able to bring together such a diverse collection of buyers—including a 1031 Exchange buyer, pension fund, private equity and family trust—underscores the intrinsic value of these long-term Kohl’s-anchored properties,” said Donald MacLellan, senior managing director of Faris Lee. “These buyers all gain long-term upside in strong well-located centers, featuring substantial co-anchors and attractive demographic profiles.” —Robert McAllister
