Rouse Properties, Inc. Completes Acquisition of Greenville Mall in Greenville, North Carolina
Company Release – 7/24/2013
NEW YORK–(BUSINESS WIRE)– Rouse Properties, Inc. (NYSE: RSE), a national owner and operator of enclosed regional malls, today announced the acquisition of Greenville Mall, in Greenville, North Carolina, for a total purchase price of approximately $50,250,000, excluding transaction costs.
Greenville Mall totals approximately 460,800 square feet and is located in eastern North Carolina, approximately 80 miles east of Raleigh. As the only enclosed regional mall within a 40 mile radius, it serves a multi-county trade area of over 400,000 people. Greenville Mall opened in 1966, and was renovated in 2001. The mall is anchored by Belk Ladies, Belk Men & Home, jcpenney and Dunham’s Sports (opening late 2013), and features leading national retailers such as Victoria’s Secret, Buckle, American Eagle, Aeropostale, Bath and Body Works and Footlocker. The center is currently 95.5% leased with average inline sales of $375 per square foot. Rouse assumed an existing $41.7 million non-recourse loan, with a 5.29% interest rate and a December 2015 maturity date.
“The purchase of Greenville Mall is a perfect fit for Rouse’s acquisition program, as we continue to add to our growing portfolio of dominant, middle market regional malls,” said Andrew Silberfein, president and chief executive officer of Rouse Properties. “With strong in-line sales, low occupancy costs and the dominant competitive position afforded by being the only mall serving the marketplace, this asset presents another opportunity for Rouse to apply our platform to significantly improve the economic metrics, tenant quality and sales productivity of the asset.”
Greenville, North Carolina is the economic hub of the central and northern areas of eastern North Carolina, and boasts a diversified employment base supported by education, healthcare and manufacturing. The area is home to East Carolina University, the second largest university in the state with over 27,000 students and 5,000 faculty and staff. Vidant Medical Center, one of four academic medical centers in North Carolina, is located three miles from the mall and provides services to more than 1.4 million people a year.
The mall was acquired in an off-market transaction from a private partnership managed by Gregory Greenfield & Associates.
Prior to the end of the second quarter Rouse completed the transfer of The Boulevard Mall in Las Vegas, Nevada to its Lender via a deed in lieu of foreclosure. The transfer was completed in a tax-efficient manner as part of a 1031 exchange, and is expected to improve the Company’s overall leverage and operating metrics.
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 32 malls in 19 states encompassing 21.8 million square feet. For more information please visit: www.rouseproperties.com.
Rouse Properties, Inc.
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Source: Rouse Properties, Inc.