NEW YORK, Feb. 21, 2012 /PRNewswire/ -- Rouse Properties, Inc. (NYSE: RSE) (Rouse) today announced it has completed the purchase of Grand Traverse Mall in Traverse City, Mich. This transaction represents the first acquisition for Rouse since debuting as a publicly-traded regional mall company in January 2012.
Grand Traverse Mall is a 589,000-square-foot, single level, enclosed regional mall which opened in 1992, is anchored by Macy's, JCPenney and Target and features amenities that include a 650-seat food court, a nine-screen stadium-seat theater and a play area and carousel for families. The property is currently 85% leased with annual small shop tenant sales of approximately $300 per square foot. The retail lineup includes such retailers as Hollister, Victoria's Secret, Aeropostale, American Eagle Outfitters, Gymboree, Bath and Body Works, Maurice's, The Children's Place, Rue 21, Finish Line and T.J.Maxx.
Grand Traverse Mall is the only enclosed mall within a 100-mile radius, it serves 22 surrounding counties with over 400,000 people inclusive of seasonal residents. Traverse City is one of the state's fastest-growing areas, serving as the recreational playground for the entire Midwest and attracting over five million tourists annually. Listed as the third-best place to retire by Money Magazine, the Traverse City area includes 20 of Michigan's most beautiful golf courses, 150 inland lakes, approximately 180 miles of shoreline, vineyards and sand dunes.
Rouse acquired the property for a total amount of approximately $66 million, consisting of cash payments for closing costs and required escrow reserves and the assumption of a restructured and discounted $62 million, five-year non-recourse loan at a 5.02% interest rate.
"Acquiring Grand Traverse Mall is an excellent example of our long-term strategy of owning and managing dominant and protected regional enclosed malls in secondary markets," said Andrew Silberfein, President and CEO of Rouse Properties. "This asset is not only being acquired at an attractive cap rate, but also represents an exciting opportunity to improve the tenant composition, occupancy levels and overall economics of the mall through an aggressive leasing, management and marketing program by Rouse's dedicated management team."
About Rouse Properties, Inc.
Rouse Properties is a publicly traded real estate investment trust headquartered in New York City and founded on a legacy of innovation and creativity. Among the country's largest publicly traded regional mall owners, the company's geographically diverse portfolio spans the United States from coast to coast, and includes 31 malls in 19 states encompassing approximately 22 million square feet of space. For more information, visit rouseproperties.com.
This press release contains "forward-looking statements" within the meaning of federal securities laws, including statements regarding expectations that are not historical facts. Rouse cautions that these statements are not guarantees of future performance and are subject to numerous risks and uncertainties, including changes in market conditions, unanticipated developments, competitive conditions, and other risk factors that Rouse identifies in its Form 10 registration statement and other filings that it makes with the Securities and Exchange Commission from time to time. Any of these factors could cause actual results to differ materially from the expectations expressed or implied in this press release. Rouse undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
Contact: Rebecca Stenholm, 212.608.5108
SOURCE Rouse Properties, Inc.