Report: Macerich Putting Lower-Tier Malls on the BlockFriday, December 7, 2012
Macerich Corp. reportedly wants to sell at least 17 non-core Class B malls around the country in an effort to streamline its portfolio.
The Santa Monica retail real estate investment trust, which owns or has interests in 59 U.S. malls, hasn’t confirmed that it has put the properties up for sale. But reports by the Wall Street Journal and Reuters said that an arm of New York real estate investment banker Eastdil Secured is marketing most of the properties.
Fourteen of the malls are wholly owned by Macerich and average about $321 per square foot, according to documents given to Reuters. Most of the malls are more than 90 percent leased.
Class B malls command lower rents from tenants because they tend to generate lower sales per square foot and are located in smaller markets or less desirable neighborhoods. The list of affected properties ranges from Northridge Mall in Salinas and California Capitola Mall in Capitola, to Rimrock Mall in Billings, Mont. and Rotterdam Square in Schenectady, N.Y.
Shares closed up 2 cents, or less than 1 percent, to $57.90 on the New York Stock Exchange.