Valley Stream, N.Y. — The Macerich Co. (NYSE: MAC) has completed its $500 million acquisition of the Green Acres Mall in Valley Stream, closing a deal that's been in the works since last October.
The shopping center owner and manager purchased the property from a subsidiary of New York-based Vornado Realty Trust. Vornado reported net proceeds from the sale were approximately $185 million following its repayment of the existing loan and closing costs.
The 1.8 million-square-foot Green Acres Mall is located on the border of New York and Nassau County and serves customers in southeast Queens and southwest Nassau County. Anchor tenants include Macy's, Sears, Kohl's, BJ's Wholesale Club and Walmart.
The super regional mall was renovated and expanded in 2007, and the mall's annual sales production exceeds $520 per square foot. The mall is 94 percent leased to tenants such as Aeropostale, American Eagle, Forever 21, H&M and Modell's sporting goods.
Macerich funded its purchase with a $325 million, fixed-rate loan at an eight-year term, with the rest coming from a mix of cash on hand and Macerich's existing line of credit.
After the deal was first announced last year, Macerich CEO and Chairman Arthur Coppola said the transaction is consistent with the company's strategy of buying high-quality assets in major markets. Simultaneously, the company has been selling its non-core assets and recycling capital.
Coppola said Green Acres will complement the Queens Center, the largest mall in Queens, which The Macerich Co. acquired in the 1990s. "There are substantial opportunities to replace lower-sales producing tenants with higher-productivity tenants in a manner similar to what we accomplished after we acquired the Queens Center," he stated in October.
Macherich, a publicly traded REIT based in Santa Monica, now owns approximately 66 million square feet of gross leasable retail space in its portfolio, which consists primarily of interests in 61 regional shopping centers.
Macerich's stock price closed at $59.99 per share Tuesday, up from trading at $52.38 per share this time last year.