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Friday, 03 February 2012

Macerich, Simon Swap Stakes in 13 Retail Properties

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Commercial Real Estate Direct Staff Report

Simon Property Group and Macerich Co. have swapped stakes in 11 malls and two shopping centers, with more than 9 million square feet, that they had owned 50-50.

The deal gave Macerich full ownership of six of the malls and one center, while Simon obtained full ownership of the other properties.

Macerich now fully owns the following malls: the SouthPark in Moline, Ill.; SouthRidge in Des Moines, Iowa; NorthPark in Davenport, Iowa, and the Eastland in Evansville, Ind. Each of those properties has 1 million sf.

It also owns the 506,260-sf Valley Mall in Harrisonburg, Va., Lake Square, with 560,324 sf in Leesburg, Fla., and the Eastland Convenience shopping center in Evansville.

Simon took full ownership of the following malls: Empire, with 1 million sf in Sioux Falls; S.D.; the 691,845-sf Lindale in Cedar Rapids, Iowa; the 850,370-sf Mesa in Grand Junction, Colo.; Rushmore, with 737,725 sf in Rapid City, S.D., the 573,370-sf Southern Hills in Sioux City, Idaho, and the 297,278-sf Empire East, also in Sioux Falls.

The Macerich-Simon venture acquired the 11 malls in the swap, along with the Granite Run Mall in Media, Pa., in 1997 for $974.5 million, which included $475 million of assumed debt. But the Granite Run Mall became delinquent on the $115 million of debt it backed and was transferred to the CMBS trust, COMM, 2006-C7, that held it.

Six of the malls in the venture partners' recent swap back a combined $719.85 million of debt that is securitized through the following CMBS trusts, Banc of America Commercial Mortgage Trust, 2006-2, 3, 4 and 6. The debt consists of seven loans that mature in 2016.

The Valley Mall backs a $43.9 million loan with a 5.834 percent coupon that is securitized though the BACM 2006-2. The other seven loans have coupons of 5.794 percent.

All of the debt is current, according to servicer data compiled by Morningstar.

Comments? E-mail John Covaleski or call him at (267) 247-0112, Ext. 208.


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Additional Info

  • Syndicate to Realpoint: No
  • Sector: Retail
  • Subject: Property Acquisitions (ACQ)
  • Company: Sonnenblick-Eichner Co.
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Data Digest







Top Bookrunners Domestic, Private-Label CMBS - 2017
Investment Bank #Deals Vol$mln MktShr%
Goldman Sachs 17.59 11,819.34 13.68
JPMorgan Securities 14.52 10,968.11 12.70
Citigroup 12.04 10,012.71 11.59
Wells Fargo Securities 14.02 9,936.06 11.50
Deutsche Bank 12.55 9,879.74 11.44




cppichart FP



CMBS 2.0 Spreads


Top CMBS Loan Contributors - 2017
Lender #Loans Vol$mln MktShr%
Goldman Sachs 146.89 11,719.34 13.63
JPMorgan Chase Bank 117.68 10,114.14 11.76
Deutsche Bank 198.48 9,689.97 11.27
Morgan Stanley 166.18 8,539.78 9.93
Citigroup 199.05 8,088.24 9.41





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