Danbury Fair Mall sells for $500 million plus
Monday, January 3 2005
A California-based real estate investment trust (REIT) recently beat out several large shopping mall owners in an auction sale for Wilmorite's entire mall portfolio, including the Danbury Fair Mall.
The Macerich Partnership L.P., an entity of The Macerich Co. of Santa Monica, Calif, agreed to acquire Rochester, N.Y.-based Wilmorite Properties Inc. and Wilmorite Holdings L.P. for about $2.33 billion on Dec. 23. It will also assume $882 million of Wilmorite's existing debt as part of the deal.
Of the total cost, 80 percent went toward purchasing three key mall properties: a 50 percent stake in the Tysons Corner Center in McLean, Va., and full ownership of both the Freehold Raceway Mall in New Jersey and the Danbury Fair Mall.
"I think this deal is part of a trend of consolidation in shopping center industry. There's been huge consolidation in recent years and that's expected to continue," said Howard Davidowitz, chairman of Davidowitz & Associates, a national retail consulting and investment banking firm headquartered in New York City.