Retail landlord Macerich is expanding its footprint into the Southeast, acquiring the Crabtree Mall in Raleigh, North Carolina, for $290 million with plans to invest $60 million to redevelop it.
Santa Monica, California-based Macerich, a real estate investment trust, on Tuesday said it had purchased the market-dominant, Class A retail center, totaling 1.3 million square feet, at 4325 Glenwood Ave. It's the largest mall in the high-growth Research Triangle Park area of the Tar Heel State, with over 200 tenants, anchored by Belk and Macy’s. Crabtree generates $429 million in annual sales, $951 in sales per square foot and has over 8.7 million annual visitors.
“Crabtree’s outstanding location brings Macerich a powerful entry point to the Southeastern U.S. and is a strong addition to the go-forward portfolio," Jack Hsieh, the REIT's president and CEO, said in a statement.
Macerich didn't identify the seller, but the deal reflects a pick-up in investment sales that started last year.
Landlords looking to expand their footprints have few options but to make acquisitions, since there has been minimal new construction in the U.S. The retail vacancy rate in Raleigh is only 2.4%, below the national average of 4.3%, according to CoStar data.
Retail investment sales volume hit $59 billion in 2024, up 8% from 2023, according to a CoStar U.S. retail report. That momentum has continued in 2025, with first-quarter volume climbing 11% over the prior-year period, and April's preliminary figures came in 45% higher than April 2024.
"While it's too early to call the second quarter, the market is clearly on stronger footing," the report said.
Improvement plans
Macerich’s portfolio is concentrated in California, the Pacific Northwest, Phoenix and Scottsdale, and the New York to Washington, D.C., metropolitan corridor. The REIT owns 41 million square feet of real estate, consisting primarily of interests in 38 retail centers.
From 2025 through 2028, Macerich said it plans to invest about $60 million in new redevelopment and leasing capital at Crabree to maximize its performance. The landlord is aiming to drive permanent occupancy from roughly 78% as of March 31 to 90% by 2028.
Macerich's Crabtree redevelopment plan includes renovating common areas and the food court, upgrading signage, landscaping, and adding new lighting to the parking decks.
Macerich has funded the Crabtree acquisition with cash on hand and $100 million of borrowings on its revolving line of credit. The company expects to repay borrowings on the revolving line of credit within 30 days with the proceeds from an expected $160 million two-year term loan.