Rouse Properties Acquires Controlling Interest in The Mall at Barnes Crossing
Company Release – 9/02/2014
– Purchases 51% Interest in Joint Venture, Reflecting Gross Value of $98.85 Million –
– Places New $67 Million 4.29% Fixed Rate First Mortgage Loan –
NEW YORK–(BUSINESS WIRE)– Rouse Properties, Inc. (NYSE:RSE), a national owner and operator of enclosed regional malls, today announced a joint venture partnership with David Hocker & Associates, Inc. to own and operate The Mall at Barnes Crossing, a single-level, 670,000 square foot enclosed regional mall in Tupelo, Mississippi. The joint venture also includes Market Center, a 60,000 square foot strip shopping center located adjacent to the property. Rouse is purchasing a 51% interest in the properties and will act as managing member for the venture. In conjunction with the transaction, the joint venture closed on a new, ten-year $67 million non-recourse loan with an interest rate of 4.29%.
“We are excited to announce our investment in The Mall at Barnes Crossing and Market Center in partnership with David Hocker & Associates, a developer, owner and operator with whom we have a strong relationship and deep respect for,” commented Andrew Silberfein, President and Chief Executive Officer of Rouse Properties. “The acquisition represents Rouse’s 36th mall and 23rd state and is consistent with the company’s goal to continue to upgrade and diversify its asset base across the country. The combination of Rouse’s national platform and Hocker’s experience and proven track record will enable us to drive revenue and sales productivity and optimize the merchandising mix at the properties.”
“We have been highly focused on the Tupelo market for more than 25 years and are pleased and honored by the opportunity to partner and work with the outstanding team at Rouse,” said David E. Hocker, Chairman of David Hocker & Associates, Inc. “The energy and vision that Rouse brings to our partnership offers great promise for the future of The Mall at Barnes Crossing and Market Center. Rouse shares our goal of offering the extended Tupelo and Northern Mississippi areas the most exciting and vibrant shopping experience possible.”
The Mall at Barnes Crossing is anchored by Belk, Belk Men’s and Home Store, jcpenney, Sears, Dick’s Sporting Goods, Barnes & Noble and an eight-screen Cinemark movie theater, and features a strong roster of national retailers such as Victoria’s Secret, Ann Taylor Loft, Chico’s, Buckle, Bath & Body Works, francesca’s and Ulta. The property is 94.1% leased with strong inline sales of approximately $360 per square foot and low occupancy costs. Market Center, the strip center adjacent to the mall is anchored by Gap, Old Navy and Shoe Carnival.
Tupelo, located approximately 100 miles southeast of Memphis, Tennessee and 130 miles northwest of Birmingham, Alabama, is the county seat of Lee County, Mississippi and the retail hub of the region. As the only enclosed mall within a 90 mile radius, The Mall at Barnes Crossing serves a trade area of over 450,000 people. The area benefits from a diverse and growing economy, including the recent opening of an $800 million Toyota manufacturing plant.
About Rouse Properties
Rouse Properties, Inc. (NYSE:RSE) is a publicly traded real estate investment trust headquartered in New York City and was founded on a legacy of innovation and creativity. Among the country’s largest publicly traded regional mall owners, the Company’s geographically diverse portfolio spans the United States from coast to coast, and includes 36 malls in 23 states encompassing approximately 25 million square feet. For more information please visit: www.rouseproperties.com.
David Hocker & Associates, Inc.
David Hocker & Associates, Inc., based in Owensboro, Kentucky, opened its first shopping center in 1964 and has since developed more than 40 shopping centers, including 13 regional malls, in 13 states. David E. Hocker is a former Chairman of the International Council of Shopping Centers.
Rouse Properties, Inc.
Investor Relations, 212-608-5108
Source: Rouse Properties, Inc.