Santa Monica, CA - June 25, 1998 - A subsidiary of The Macerich Company (NYSE Symbol:MAC) has acquired South Plains Mall, a 1,107,000 square foot super regional mall in Lubbock, Texas. The purchase price was $115.7 million, consisting of the assumption of $29.4 million of debt, at market value, and $86.3 million of cash. The seller is South Plains Mall Associates Ltd., a Texas Limited Partnership.
The mall is anchored by Dillard's, Sears, J.C. Penney and Mervyns. South Plains Mall also has an extremely strong roster of national specialty retailers including Eddie Bauer, The Disney Store, Gap and Gap Kids, Gymboree, Old Navy and Buckle. 1997 sales per square foot were approximately $300. The current occupancy level is approximately 92%. The initial unleveraged yield from this transaction based upon in place income is 8.7%.
South Plains Mall is the only regional mall within 120 miles and serves a market of 500,000 people. Lubbock serves as the regional hub for a 12-county region in Northwest Texas and is home to Texas Tech University which has an enrollment of 25,000 students.
"South Plains Mall is the dominant super regional mall in the northwest Texas region. With its outstanding sales volumes, strong anchor mix and the expanding trade area, we are very optimistic about the mall's future," commented Arthur Coppola, president and chief executive officer of Macerich. "This acquisition further expands Macerich's presence in the southwest and strategically fits in with our portfolio of properties in Texas, Colorado, Utah and Oklahoma."
The Macerich Company is a fully-integrated, self-administered and self-managed real estate investment trust, which focuses on the acquisition and redevelopment of regional malls and community centers throughout the United States. In the past 18 months Macerich has acquired interests in 17 malls totaling 15 million square feet. The Company now owns interests in 39 malls and four community centers totaling 34 million square feet. Additional information can be obtained by accessing the company's website @ www.macerich.com.