Macerich Acquires Two Shopping Malls in the Bay Area for $165.5 Million

Macerich Co. said it bought the Village at Corte Madera and Carmel Plaza shopping malls in the San Francisco Bay Area for $165.5 million in cash, securities and the assumption of debt.

The deals continue a string of acquisitions by the Santa Monica-based company, one of the largest mall owners in the U.S., as the industry undergoes a wave of consolidation. Macerich has made about $1.7 billion worth of purchases in the last year.

The Village at Corte Madera in Corte Madera has 428,000 square feet of space. It’s 96% occupied and generates retail sales of about $470 a square foot, more than double the industry average, Macerich said.

Carmel Plaza, located in Carmel, is 98.3% occupied and generates sales per square foot of $350. The center has 115,000 square feet of space.

Macerich said it plans to finance the acquisitions with $117.5 million of cash, $8 million of securities and the assumption of $40 million of debt. The sellers include a partnership, pension funds and two individuals. The company didn’t elaborate.

The mall industry is consolidating as the larger mall companies rush to grow in a bid to cut costs and gain more leverage over retailers in negotiating leases.

Macerich owns or has a stake in 41 malls and five neighborhood shopping centers across the country with 35 million square feet of space.