Rouse Properties closes on purchase of Chesterfield Towne Center
- December 12, 2013
Rouse Properties Inc., a public real estate investment trust based in New York, has acquired Chesterfield Towne Center in Chesterfield County and The Centre at Salisbury in Salisbury, Md., for a purchase price of about $292.5 million, excluding transaction costs.The deal closed on Dec. 11.
“Chesterfield Towne Center and The Centre at Salisbury are key additions to our portfolio of dominant, middle-market regional malls,” Andrew Silberfein, president and CEO of Rouse Properties said in a statement. “These malls both serve expansive trade areas with limited enclosed mall competition, supporting strong inline and anchor sales volumes … We see opportunities at both malls to apply our strong platform to substantially improve the malls’ economic metrics, merchandising mix and tenant quality.”
Chesterfield Towne Center is a 1,018,000-square-foot regional mall located off Huguenot Road and Midlothian Turnpike. According to Rouse, the high-growth, affluent submarket within a five-mile radius of the mall has an average household income of $101,000. The mall, which opened in 1975 and was renovated in 2008, serves a trade area of more than 550,000 people. It is anchored by Macy’s, Sears, jcpenney and Garden Ridge.
According to Rouse, the property is currently 88.1 percent leased with average inline sales of about $360 per square foot. Rouse said it assumed an existing $109.7 million non-recourse loan with a 4.75 percent interest rate and an October 2022 maturity date.
The 862,000-square-foot-mall in Salisbury is the only enclosed mall for over 55 miles, serving a trade area of more than 330,000 people across nine counties in Maryland, Virginia, and Delaware. The Centre at Salisbury opened in 1990 and was renovated in 2010. It is anchored by Macy’s, Boscov’s, Sears, jcpenney and Dick’s Sporting Goods. A 16-screen Regal Cinema occupies a 72,000 square foot outparcel, and there are several restaurants nearby. Rouse said the center is currently 93.8 percent leased with average inline sales of approximately $320 per square foot. Rouse assumed an existing $115 million partial-recourse loan with a 5.79% interest rate and a May 2016 maturity date.
The malls were acquired from affiliates of The Macerich Co.