Rouse Properties Acquires Mt. Shasta Mall in Redding, California
Company Release – 2/18/2015
NEW YORK–(BUSINESS WIRE)– Rouse Properties, Inc. (NYSE:RSE), a national owner and operator of enclosed regional malls, today announced the acquisition of Mt. Shasta Mall in Redding, California for a total purchase price of approximately $49.0 million, excluding transaction costs and closing adjustments. The acquisition was financed with a new ten-year $31.9 million non-recourse CMBS loan with an interest rate of 4.19%.
“We are pleased to announce the acquisition of Mt. Shasta Mall, further adding to our significant presence throughout the state of California,” commented Andrew Silberfein, president and chief executive officer of Rouse Properties. “With California representing about a quarter of our income, we continue to experience strong sales gains and increased store demand in our San Diego, San Francisco and northern California assets. Shasta’s inline sales of over $350 per square foot, coupled with low occupancy costs of approximately 10% and occupancy of 90%, provides Rouse with another opportunity to create significant value and achieve attractive returns as we improve the quality of the asset and overall customer experience.”
Mt. Shasta Mall is the only enclosed mall within a 70-mile radius and is the dominant shopping destination in northeastern California. The 521,000 square foot center is anchored by Macy’s, jcpenney and Sears, and features over 60 specialty stores and restaurants, such as Victoria’s Secret, Bath & Body Works, The Buckle, Footlocker, American Eagle, Zumiez, Journey’s, The Children’s Place and Old Navy. The mall was built in 1975 and was expanded in 2001 to accommodate the only Macy’s within 150 miles and strong demand for additional small shop GLA.
Mt. Shasta Mall serves as the retail hub for the Redding trade area. The region’s high quality of life, low cost of living, warm climate, beautiful setting, diverse recreational and cultural attractions, and strong local and regional economic drivers make Redding an attractive location for residents, visitors and employers alike. The City of Redding’s strategic location on Interstate 5, California’s primary north-south commercial corridor, and its convenient connections to other major roads, railways, and airports make the city a transportation and distribution hub.
The mall was acquired from a private partnership represented by Eastdil Secured.
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 22 states encompassing approximately 25.6 million square feet. For more information please visit: www.rouseproperties.com.
Source: Rouse Properties, Inc.