STARWOOD CAPITAL COMPLETES $1.6B BUY OF SEVEN REGIONAL MALLS
GREENWICH, CONN. — Starwood Capital Group, through a controlled affiliate, has completed the acquisition of a majority interest in seven regional malls in the United States from the Westfield Group. Westfield will maintain a 10 percent common equity interest in the properties.
The acquisition builds on a longstanding relationship between Starwood Capital Group and Westfield, a Sydney, Australia-based owner and operator of shopping centers. The two firms completed a similar transaction in June 2012 involving seven malls in California, Illinois, Ohio, Nebraska and Florida that helped lead to the formation of Starwood Retail Partners, the wholly owned operating platform that oversees Starwood Capital’s retail investments.
“I believe we can build a differentiated company in the retail mall marketplace,” says Barry Sternlicht, chairman of Starwood Retail Partners. “We intend for Starwood Retail Partners to be an important new player in this industry, with fresh ideas and collaborative partnerships with tenants and to attract great talent to power our growing platform.”
The malls include 7.9 million square feet of retail space across four states on the West Coast and the Midwest. The sites are anchored by major national retailers and have an average occupancy of approximately 96 percent. Starwood Retail Partners will perform all property management, leasing and — in conjunction with Starwood Capital Group — asset management functions for the newly acquired properties. The existing onsite management teams will continue to operate the properties under the direction of Starwood Retail Partners.
Properties in the acquisition include:
- Belden Village Mall in Canton, Ohio
- Capital Mall in Olympia, Wash.
- Franklin Park Mall in Toledo, Ohio
- Great Northern Mall in North Olmsted, Ohio
- Parkway Plaza in El Cajon, Calif.
- Plaza West Covina in West Covina, Calif.
- Southlake Mall in Merrillville, Ind.
During the past 18 months, Greenwood, Conn.-based Starwood Retail Partners has assembled a portfolio of 19 regional malls and retail centers with an aggregate purchase price of more than $3.2 billion, according to Scott Wolstein, CEO of Starwood Retail Partners.
” We continue to build a best-in-class team of experienced industry veterans whose focus on operations, leasing and property management will help to create and maximize value across our portfolio,” says Scott Ball, COO of Starwood Retail Partners. “We plan to leverage our expertise to create dynamic space for our retailers and enhance the experience for our customers at each of these locations for years to come.”