CBRE Global Investors has acquired a stake in a portfolio of Class A super-regional malls, which were previously owned by General Growth Properties, through a joint venture agreement with Brookfield Property Partners. Included in that stake is The Parks Mall at Arlington.
CBRE Global Investors made the investment on behalf of its institutional investor clients.
The portfolio is comprised of three Class A super-regional malls with 3.7 million square feet of retail space and is 98 percent leased to a strong mix of national/regional retailers, including a number of high-quality experiential retailers. The assets, which are geographically diverse across three markets, include:
• Cumberland Mall: a 1 million square foot super-regional mall in northwest Atlanta
• Ridgedale Center: a 1.2 million square foot super-regional mall in western Minneapolis
• The Parks Mall at Arlington: a 1.5 million square foot super-regional mall between Dallas and Fort Worth at Loop 820 and Cooper St. in south Arlington.
“We believe that Class A super-regional malls remain one of the most attractive investments available today,” said David Morrison, CIO-Americas, CBRE Global Investors. “These assets have a historic track record of material outperformance, dominating their retail catchment within their submarkets, and we expect that assets of this quality and scale should maintain that advantage going forward. The opportunity to invest in this sector in scale with this level of quality was very attractive, and we look forward to partnering with Brookfield on this portfolio.”
The GGP operations and leasing teams will continue to operate the portfolio as property manager and leasing agent.
This investment builds on CBRE Global Investors’ extensive retail sector experience. The firm currently manages approximately $23 billion in retail assets globally.
Brookfield Property Partners L.P. also announced Aug. 28 (NASDAQ: BPY) that it has completed its acquisition of mall owner GGP Inc. In connection with the closing, Brookfield Property REIT Inc. has been created as a public security that is intended to offer economic equivalence to an investment in BPY in the form of a U.S. REIT stock. BPR’s Class A stock and Series A preferred stock will commence trading on the NASDAQ under the symbols “BPR” and “BPRAP”, respectively. Brookfield now owns 12 malls in Texas, including Hulen Mall in Fort Worth, Stonebriar Centre in Frisco and Town East Mall in Mesquite.