#macerich

The Macerich Firm: A Turnaround In Progress, However Too Many Dangers For Now

THE REAL DEAL LA |  CATHLEEN CHEN |  FEBRUARY 6, 2017

Westside Pavilion mall will undergo renovations of its own

The Macy’s on Pico Boulevard in West Los Angeles may be the latest casualty of big box stores’ downsizing.

GPI founder Cliff Goldstein and the Macy’s at 10730 Pico Boulevard (Credit: GPI, CoStar)

An entity affiliated with Macy’s sold the 220,000-square-foot storefront, an anchor of the Westside Pavilion shopping center, to GPI Properties for about $50 million, or $227 per square foot, The Real Deal has learned.

The Los Angeles-based real estate investment firm purchased the property under an affiliate entity, Cotillo La Pico LLC, an employee confirmed. Company representatives familiar with the transaction, however, could not be reached in time for comment.

Built in 1985, the three-story structure was last renovated in 2000, according to CoStar. Meanwhile, the rest of Westside Pavilion is gearing up for some major changes under the ownership Macerich company. The Santa Monica developer announced its plans for renovation last spring but has yet to reveal any further details.

It’s unclear whether the Macy’s will shutter in the near future. It’s not one of the 68 Macy’s stores that the company announced will close this year. When TRD called the store on Pico Boulevard, an employee said there are no immediate plans of closure.

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