CORRECTION - Macerich Announces Initial Progress in its Path Forward Strategic Plan

Macerich Purchases Remaining 40% Share of Arrowhead Towne Center (a Top 10 NOI Center for Macerich) and South Plains Mall from JV Partner, and Commits to the Sale of a Prominent Retail Asset

SANTA MONICA, Calif., May 16, 2024 (GLOBE NEWSWIRE) -- In a release issued under the same headline earlier today by Macerich (NYSE: MAC), please note in the third paragraph, the amount the transaction is expected to generate has been corrected to $110 million of net proceeds. The corrected release follows:

Macerich (NYSE: MAC), one of the nation’s leading owners, operators and developers of major retail properties in top markets, today announced its purchase of the remaining 40% share of both Arrowhead Towne Center (Metro Phoenix) and South Plains Mall (Lubbock, Texas) for $36.5 million plus the debt, which for Arrowhead is a 7.2% cap rate, from its joint venture partner, a global institutional investor.

This transaction, which closed on May 14, gives Macerich full ownership of both properties.

Additionally, Macerich has executed a contract for the sale of a retail asset in a major market. The transaction is expected to generate approximately $110 million of net proceeds based on an expected cap rate of 6.5% and is anticipated to close this summer.

“We are pleased to achieve full ownership of these retail assets via the purchase of the remaining 40% share from our JV partner,” said Jack Hsieh, President and Chief Executive Officer, Macerich. “Given the pending, massive microchip investment within the Arrowhead Towne Center market, we believe there are significant positive impacts to our trade area that we will soon be able to capitalize upon. With these transactions, Macerich is acting on its strategic plan that includes disposing of certain assets to reduce our leverage and simplifying our business through selectively consolidating certain JV interests over time.”

Located in a high-growth area of Metro Phoenix, the 1.1 million-square-foot, super-regional Arrowhead Towne Center is a market-dominant, top 10 NOI center for MAC and a top 10 sales PSF center at well over $1,100 PSF – second only to Scottsdale Fashion Square among Macerich’s Phoenix market assets. Currently 100% leased, Arrowhead Towne Center is anchored by Dillard’s, Macy’s, JCPenney, DICK’s Sporting Goods, AMC Theatres and a brand-new Round1 Spo-Cha.