Rouse Properties Acquires Fig Garden Village in Fresno, California
Company Release – 6/04/2015
– Acquisition Increases Presence in California and Further Enhances Portfolio Quality –
NEW YORK–(BUSINESS WIRE)– Rouse Properties, Inc. (NYSE:RSE), a national owner and operator of enclosed regional malls and retail centers, today announced the acquisition of Fig Garden Village, a 301,459 square foot lifestyle center in Fresno, California for a total purchase price of approximately $106.1 million, excluding transaction costs and closing adjustments. The acquisition was financed with a new $74.2 million non-recourse CMBS loan with an interest rate of 4.14%.
“Our acquisition of Fig Garden Village represents a natural next step in continuing to broaden and upgrade Rouse’s portfolio. Our management team has a proven track records in lifestyle centers and our platform continues to add lifestyle components throughout our existing mall portfolio. This acquisition highlights our opportunity to grow into more markets and broaden our offerings for our retail partners,” commented Andrew Silberfein, president and chief executive officer of Rouse Properties. “We continue to focus our strategy on owning the best retail assets within our markets, providing market-leading pricing power. While Fig Garden has been the prime shopping destination in Fresno for decades, there remains significant value creation opportunities for us as we improve the overall customer experience of the shopping center, and add more powerful and productive retailers. This acquisition provides significant synergies in terms of intensifying our relationships with top quality retailers which we are focused on adding throughout our portfolio as part of our companywide capital investment initiatives.”
Fig Garden Village is a Whole Foods-anchored community lifestyle center located in Fresno, California. The center was built in 1956 and renovated in 2007. In addition to the only Whole Foods Market within 150-miles, the center features a dominant tenant line-up including such tenants as: Lululemon, Williams-Sonoma, J. Crew, Pottery Barn, Chicos, White House Black Market, Chipolte and Starbucks. Fig Garden Village is 93.9% leased with total center sales of approximately $470 per square foot.
Fig Garden Village is located in the most dense and affluent neighborhood in the trade area with average household incomes exceeding $73,000 surrounding the property. The center is situated at a high-traffic corner with traffic counts of approximately 70,000 cars per day, and is positioned just one mile west of the Shaw Avenue Highway 41, providing convenient access to and from the surrounding trade area.
Fresno is the 5th largest MSA in California, with an estimated population of over 2 million. In 2014, Fresno’s employment growth of 4.5% was among the highest of all large U.S. MSAs. The area continues to benefit from substantial tech growth, with Apple, Google, and Facebook, among others, investing in future expansion sites.
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 35 malls and retail centers in 21 states encompassing approximately 24.1 million square feet. For more information please visit: www.rouseproperties.com.
Source: Rouse Properties, Inc.