Los Angeles Firm Buys 49 Percent of Centers in Georgia, Minnesota and Texas Valued at More than $1 Billion Combined
CBRE Global Investors got a 49 percent stake in three U.S. shopping malls, consisting of the Ridgedale Center in Minnetonka, Minnesota.CBRE Global Investors went on a shopping spree today, getting stakes in super-regional shopping centers in Georgia, Minnesota and Texas valued at more than $1 billion integrated from realty financial investment trust GGP, showing a bet that big enclosed shopping centers have a strong future in high-growth markets. The Los Angeles-based realty property management
company said Tuesday it obtained the portfolio in a joint endeavor with Toronto-based Brookfield Home Partners, which is anticipated to close Tuesday on its acquisition of Chicago-based GGP. CBRE acquired a 49 percent stake in the malls, while Brookfield will own 51 percent through its ownership of GGP. The three shopping malls in the portfolio- valued at more than$1 billion integrated-
total around 3.7 million square feet and include the Cumberland Shopping center, a 1 million-square-foot regional center just northwest of Atlanta; Ridgedale Center, a 1.2 million-square-foot shopping center in western Minneapolis; and The Parks Shopping Mall at Arlington, a 1.5 million-square-foot mall between Dallas and Fort Worth. The relocation by CBRE Global Investors, an affiliate of international services firm CBRE, comes as retail experts discuss the viability of confined”fortress”malls. The growing appeal of online shopping and open-air centers in mixed-use neighborhoods have positioned a legitimate threat to regional malls. But CBRE stated shopping centers in the right locations produce a good financial investment.”Class A super-regional shopping centers remain among the most attractive investments readily available today,”said David Morrison, CBRE Global Investors
‘chief financial investment officer for the Americas.” These properties have a historical track record of product outperformance, controling their retail catchment within their submarkets, and we anticipate that properties of this quality and scale ought to preserve that advantage moving forward.”The shopping centers obtained by the CBRE/Brookfield joint venture are 98 percent rented”to a strong mix of national/regional retailers, including a variety of
high-quality experiential retailers,”CBRE Global Investors stated. GGP’s leasing and operations groups will keep marketing and handling the properties. CBRE Global Financiers made the acquisition on behalf of its institutional financier clients.
To find out more on the deal, please see CoStar Comp # 4492976.