COSTAR NEWS | MARK HERSCHMEYER | JANUARY 23, 2017

The Macerich Co. sold the Cascade Mall  in Burlington, WA, and Northgate Mall in San Rafael, CA, to Merlone Geier Partners for $170 million or about $133/square foot. Cascade Mall is a 448,861-square-foot regional Mall built in 1989. Northgate Mall is a 241,855-square-foot regional mall built in 1965. As of Sept. 30, 2016, Cascade and Northgate generated sales per square foot of $319 and $421, respectively, and had occupancy rates of 86.5% and 94.9%, respectively, according to Macerich. These figures compare to Macerich portfolio averages of $626 per square foot in sales and 95.3% occupancy at 9/30/16. 

These latest dispositions are consistent with Macerich's strategy of recycling capital out of non-core assets and into its development pipeline. This sale resulted in net proceeds to Macerich of $100 million after the repayment of a floating-rate note on Northgate. The buyer, Merlone Geier Partners, is a private real estate investment company focused on the acquisition, development and redevelopment of retail and retail-driven mixed-use properties on the West Coast. The firm has been actively investing in West Coast retail property since 1993, acquiring to date 144 properties representing over 24.5 million square feet. Merlone Geier recently closed its 12th real estate fund, with committed equity capital of $1.14 billion. For more information on the sale, see CoStar Sale Comp ID: 3809888