Rouse Properties Completes Acquisition of Bel Air Mall
Company Release – 5/22/2014
NEW YORK–(BUSINESS WIRE)– Rouse Properties, Inc. (NYSE:RSE), a national owner and operator of enclosed regional malls, today announced the acquisition of Bel Air Mall, in Mobile, Alabama, for a total purchase price of approximately $135.2 million, excluding transaction costs and closing adjustments.
“We are pleased to complete our acquisition of Bel Air Mall, which is a perfect fit with our growing portfolio of dominant ’only-game-in-town’ regional malls,” said Andrew Silberfein, president and chief executive officer of Rouse Properties. “As the only enclosed mall within sixty miles, Bel Air enjoys a protected competitive position along with an excellent roster of over 110 vibrant retailers. As we apply our platform to this asset going forward, we believe there are substantial opportunities to create value through targeted improvements to the asset and to the retailer merchandising mix. Since our formation, we have acquired more than $650 million of malls, growing our portfolio by more than 30%, and we continue to have a pipeline of additional opportunities we are considering as we move forward.”
Bel Air Mall, a 1.3 million square foot super regional mall, is the only enclosed regional mall within a 60-mile radius of Mobile, and serves an expansive trade area of more than 570,000 people across southern Alabama, Mississippi, and the Florida Panhandle. Bel Air Mall opened in 1967, and was renovated in 2006. The mall is anchored by Belk, Dillard’s, Target, jcpenney and Sears, and features leading national retailers such as Victoria’s Secret, Francesca’s, Forever 21, Bath & Body Works, Buckle, Charlotte Russe and Foot Locker. The center is approximately 90% leased, with average inline sales of $340 per square foot.
Mobile, Alabama, is the largest metropolitan area along the Gulf Coast between Tampa and New Orleans. The area is home to one of the most active ports in the southern United States, as well as a growing financial and manufacturing center. Just six miles from the mall, Airbus is constructing a new $600 million final assembly line for their A320 Jetliner with a backlog of orders exceeding $400 billion. Other major employers in Mobile include Austal, ThyssenKrupp Steel, and the University of South Alabama.
The mall was acquired in an off-market transaction from a private partnership managed by Gregory Greenfield & Associates. As partial funding for its investment, Rouse assumed an existing $112.5 million non-recourse loan, with a 5.30% interest rate and a December 2015 maturity date.
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 in 22 states encompassing approximately 25 million square feet. For more information please visit: www.rouseproperties.com.
Source: Rouse Properties, Inc.