Macerich sells Tucson Mall for $ 165 million
Macerich sold La Encantada, a high-end mall.
Santa Monica-based Macerich Co. sold La Encantada, a retail center in Tucson, Arizona, for $ 165.3 million on September 17.
La Encantada is a 246,000 square foot open air center located on 2905 E. Skyline Drive.
Tenants include Crate & Barrel, Coach, Victoria’s Secret and Apple Stores.
The sale of the center brought Macerich an additional $ 100 million in liquidity.
And it’s not the only retail property Macerich has unloaded recently.
In March, it sold 95% of the Paradise Valley Mall in Phoenix. That sale generated net proceeds of $ 95 million for the company.
The company sold its non-core assets to generate more liquidity.
“In addition to selling these properties, we are successfully running a solid land and pad sales program that is expected to generate an additional $ 100 million in 2021-2023,” said Ed Coppola, president of Macerich, in a statement.
“Our targeted divestment efforts are designed to allow us to recycle capital for key consolidation and diversification activities as we continue to implement our downtown strategy across a number of Macerich properties across the country,” he added.
Macerich owns 49 million square feet of real estate, largely from an interest in 45 regional city centers.
On-site properties include Santa Monica Place and Los Cerritos Center.
Macerich released its second quarter results in August. According to head of the company, Thomas O’Hern, capacity utilization hit a low point in March, but has since increased compared to 2019. In March, rental revenues increased by 8.6%, in April by 9.9% and in May and June both were up 15% compared to 2019.
However, the traffic is only 90% of the value before Covid. O’Hern said during the conference call that the retail environment now feels stronger than it did after the financial crisis in 2009 and 2010, and he expects the rest of the year to be strong.
During the call, he also said he expected the company to have “one or two more deals” by the end of the year. The proceeds from the sale or sales, he said, would be used to reduce debt
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