Macerich Buys Out Arrowhead Towne Center, South Plains Mall From JV Partner

(RTTNews) - REIT Macerich Co. (MAC) announced Thursday that it now owns both Arrowhead Towne Center and South Plains Mall after purchasing the remaining 40% share from its joint venture or JV partner, a global institutional investor, for $36.5 million plus the debt.

For Arrowhead, the purchasing price is a 7.2% cap rate.

The transaction, which closed on May 14, gives Macerich full ownership of both properties.

Further, Macerich said it has executed a contract for the sale of an open-air asset in a major market.

Jack Hsieh, President and Chief Executive Officer, Macerich, said, "We are pleased to achieve full ownership of these highly attractive retail assets via the purchase of the remaining 40% share from our JV partner. Given the pending, massive microchip investment within the Arrowhead Towne Center market, we believe there are significant positive impacts to our trade area that we will soon be able to capitalize upon."

The 1.1 million-square-foot, super-regional Arrowhead Towne Center is located in a high-growth area of Metro Phoenix. Currently 100% leased, Arrowhead Towne Center is anchored by Dillard's, Macy's, JCPenney, DICK's Sporting Goods, AMC Theatres and a brand-new Round1 Spo-Cha.

The buoyant trade area is home to the new Taiwan Semiconductor Manufacturing Company site consisting of three fabs, opening in phases beginning in 2025 and bringing TSMC's total investment in Arizona to more than $65 billion.

Arrowhead Towne Center's trade area also boasts three top-ranked universities and 13,000 K-12 students.

South Plains Mall is a 1.1 million square foot super-regional shopping center in Lubbock, Texas, home to Texas Tech University and its $4.3 billion annual economic impact.