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Macerich Strikes $116M Deal For Flatiron Crossing Mall with GI Partners

Macerich Selling 75% Interest in Broomfield, CO Mall to Private Equity
By Sasha M Pardy
September 4, 2009 | 4:58 AM

GI Partners has entered into a joint venture relationship with Macerich (NYSE:MAC), to buy a 75% share in the REIT's FlatIron Crossing Mall in Broomfield, Colorado, for $116 million. In a statement, Macerich president Edward Coppola said that this transaction is part of the company's deleveraging strategy. Macerich will continue to manage Flatiron. Nordstrom, Macy’s, Dick’s Sporting Goods and Dillard’s anchor the 1.4-million-square-foot super regional mall, located just off the Denver-Boulder Turnpike. Macerich said the 97%-occupied mall, built in 2000, produced $443 per square foot in tenant sales during 2008. Macerich recently re-tenanted a former Lord & Taylor box at the mall with Forever 21, the Container Store, and Ultimate Electronics. Macerich inherited Flatiron Crossing in 2002 when it acquired Phoenix-based developer, Westcor, in a $1.5 billion deal. GI Partners was established in 2001 as a mid-market private equity firm, started by the same team that founded Digital Realty Trust. The company is acquiring Flatiron Crossing under its GI Partners Fund IIII L.P., which has raised $2 billion in capital commitments from private equity and real estate investors.

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