WASHINGTON (dpa-AFX) - The Macerich Company (MAC) announced the acquisition of Crabtree Mall, a Class A retail center totaling approximately 1.3 million square feet in Raleigh, NC for $290 million. Macerich has funded the acquisition with cash on hand and $100 million of borrowings on revolving line of credit.
Macerich expects an initial yield on the Crabtree acquisition of approximately 11% based on the property's estimated 2025 net operating income and an estimated yield of approximately 12.5% inclusive of current leases signed but not opened with rent expected to commence in 2027. Over the course of 2025 through 2028, the company plans to implement a strategic investment plan at the property totaling approximately $60 million of new redevelopment and leasing capital.
'Crabtree checks all the boxes for pursuing opportunistic external growth with its strong traffic and sales, its market-dominant position in a high-growth market, the ability to drive improvements in permanent leasing and NOI as well as the accretion to our 2028 target FFO ranges under the Path Forward Plan,' said Jack Hsieh, President and CEO, Macerich.
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