Rare Opportunity to Acquire Three Dominant Middle-Market Regional Malls

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On behalf of Gregory Greenfield & Associates, Ltd., JLL’s today announced the firm is marketing for sale three regional malls. The Central Malls are located in the United States’ southern region, and are being offered on an individual basis or as a portfolio. The portfolio is currently 98.3 percent occupied.

“The Central Malls have been a part of the GG&A portfolio for nearly ten years, and have become the dominant shopping and entertainment hubs of their respective communities. As the only enclosed regional malls in their trade area, they continue to offer excellent growth and income enhancement opportunities,” said Greg Greenfield, President of Gregory Greenfield & Associates, Ltd.

The Central Malls’ retailer mix is tailored towards its middle market customer base, and the properties have all demonstrated consistent leasing momentum and sales stability through the downturn. We expect this offering to generate significant investor interest, particularly from institutional owners and private equity funds looking to diversify their portfolio with strong cash-flowing retail assets.

The Central Malls portfolio consists of the following properties:

  • Retailer MixCentral Mall, located at 200 SW C Avenue, Lawton, Okla., was built in 1979 and underwent a comprehensive renovation in 2001. The property is comprised of 526,082 square feet of retail space and is currently anchored by Dillard’s, JC Penney, Sears and ShowPlex.
  • Central Mall, located at 2400 Richmond Road, Texarkana, Texas, was built in 1978 and underwent renovations in 2001. The property is comprised of 726,176 square feet and is currently anchored by Dillard’s, JC Penney, Sears and Bealls.
  • Central Mall, located at 3100 Highway 365 in Port Arthur, Texas, was built in 1980 and underwent a comprehensive renovation in 2005, and added Target to its anchors in 2004. The property is comprised of 701,605 square feet of retail space and is currently anchored by Dillard’s, JC Penney, Sears, Target and Bealls.

The retail real estate market as a whole is in a healthier state than at any point since the recession. National rents are inching up, and vacancy has compressed to 6.5 percent in the first quarter of 2014, and is now approximately 100 basis points below its peak in 2009. As net absorption continues to climb and development remains limited, landlords will continue to exert some power in tenant selection and we expect cap rates to continue compressing for regional malls.

Managing Directors Kris Cooper and Margaret Caldwell are leading the JLL team on the transaction.

 

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