Buyers Can Be Choosers As Westfield, Simon, General Growth Shed Underperforming Malls
Wall Street Journal reports: After more than a year of improving pricing and declining initial yields, current mall owners have seemingly simultaneously determined that now is as good a time as any to place their under-performing and lower-quality properties on the market. The Wall Street Journal reported that in recent weeks, “Mall giants Westfield Group, Simon Property Group and General Growth Properties are marketing 40 malls across the country, an unusually large number for any one time.” By way of comparison, the Journal cited Real Capital Analytics (RCA) in stating that just 57 mall deals were closed for all of last year, for a total of $2.6 billion in transactions.
The Journal attributes part of the acceleration in mall offerings to the sector-wide improvement in availability of financing for trades. Particularly, the CMBS market has expanded its presence in the first quarter, allowing many sellers to feel assured that a buyer will be able to acquire their property with financing. However, pricing for malls has been poor since the downturn. Cap rates for malls averaged 8.8% in 2010, up from as low as 6.4% during the market peak. This means that it is still a buyer’s market for mall space as sellers return this spring.
View the full article on Wall Street Journal: Buyers Can Be Choosers As Westfield, Simon, General Growth Shed Underperforming Malls
Articles related to this topic:
Record-Setting Price Lands Spanish Retailer a Fifth Avenue Flagship
666 Fifth Ave Sale Illustrates Current Retail Condo Appeal
After Bumpy First Quarter, CMBS Continues Upward March
With a New Plan and Name, Can Xanadu Become the Next Mall of America?
Posted by: Nina Turner