The Macerich Company (NYSE: MAC), a Santa Monica, California-based real estate investment trust, has acquired Crabtree Valley Mall, a Class A retail center totaling approximately 1.3 million square feet in Raleigh, North Carolina, for $290 million.
The acquired property encompasses over 200 stores and dozens of restaurants. It is the largest mall in North Carolina’s Research Triangle area and generates $429 million in annual sales with over 8.7 million annual visitors.
Macerich has funded the acquisition with cash on hand and $100 million of borrowings on its revolving line of credit. Over the next three year, the company plans to implement a strategic investment plan at the property totaling approximately $60 million of new redevelopment and leasing capital to maximize the center’s performance.
“Crabtree checks all the boxes for pursuing opportunistic external growth with its strong traffic and sales, its market-dominant position in a high-growth market, the ability to drive improvements in permanent leasing and NOI as well as the accretion to our 2028 target FFO ranges under the Path Forward Plan,” said Jack Hsieh, president and CEO at Macerich. “We have successfully de-risked the execution of the Path Forward Plan with 62% of our new lease deals achieved to date, placing us well ahead of schedule to reach 70% of the Path Forward leasing target by year-end 2025. We are on track with the operational performance improvement and asset sale components of the plan as well, positioning us to create additional value with the acquisition of this irreplaceable retail property.”
