By Edward Cardenas
SOUTHFIELD (CBSDetroit.com) – Taubman Centers announced Wednesday two popular shopping centers in metro Detroit have been sold to Starwood Capital Group of Greenwich, Conn.
The Mall at Partridge Creek in Clinton Township, and Fairlane Town Center in Dearborn, were among seven malls across the country by Taubman Centers, Inc.
“Given today’s investor interest in high quality regional malls, we have taken advantage of the opportunity to further enhance our growth and valuation, while increasing our industry leading productivity and modestly reducing the size of our base,” said Robert S. Taubman, chairman, president and chief executive officer of Taubman Centers in a release. “As a result of these sale transactions, the company’s development and redevelopment pipeline will have an even greater impact on our growth.”
Taubman added in a conference call that the decision to sell Fairlane, which opened in 1976, and Partridge Creek, which opened in 2007, was a “strategic decision.”
“The seven centers we are selling are strong properties that fit well within the Starwood portfolio and will continue to thrive under their management,” said Taubman in a release.
Fairlane features anchor tenants including JC Penney, Macy’s and Sears. Carson’s and Nordstrom are the anchor tenants at Partridge Creek.
The malls which were sold for $1.405 billion are:
- MacArthur Center (Norfolk, Va.)
- Stony Point Fashion Park (Richmond, Va.)
- Northlake Mall (Charlotte, N.C.)
- The Mall at Wellington Green (Wellington, Fla.)
- The Shops at Willow Bend (Plano, Tex.)
- The Mall at Partridge Creek (Clinton Township, Mich.)
- Fairlane Town Center (Dearborn, Mich.)
Following the sale, which is expected to be completed in the fourth quarter of 2014, Taubman will own 17 malls in the United State and China.
“This acquisition is highly strategic for Starwood and its retail operating platform, Starwood Retail Partners(“SRP”),” said Barry Sternlicht, chairman & chief executive officer of Starwood Capital Group in a release. “The Taubman portfolio broadens our relationships with higher end department stores and in line tenants and gives us an excellent opportunity to continue to produce attractive returns for our investors.”
With the purchase of the seven malls, Starwood Retail Partners will own 28 properties totaling 26.8 million square feet across 15 states.