Taubman and Macerich to Acquire Country Club Plaza
Kansas City, Mo. -- Taubman Centers and The Macerich Company announced an agreement to purchase Country Club Plaza located in Kansas City, Missouri, from Highwoods Properties. Taubman and Macerich will each have a 50% interest in the center, which will be jointly managed by both companies. The mixed-use retail and office property was purchased for $660 million cash, excluding transaction costs. Concurrent with or shortly after closing, a long-term, fixed-rate loan for 50%-60% of the purchase price is expected to be placed on the asset.
Country Club Plaza constructed in 1922 is a 15-block, 1.3 million sq. ft. mixed-use retail and office property located in the heart of Kansas City. The retail portion of the property includes 804,000 sq. ft. of GLA featuring 45 unique-to-market tenants, with key retailers such as Apple, H&M, Tesla and Lululemon, as well as a mix of restaurants, including The Capital Grille and The Cheesecake Factory. The 468,000 sq. ft. office portion of the property is comprised of the ten-story Valencia tower, which serves as the worldwide headquarters of Lockton Companies, and additional office space located above the ground-level retail.
“Taubman and Macerich are bringing our collective expertise together to continue to ensure the long-term growth and success of the iconic Country Club Plaza,” said Robert S. Taubman, chairman, president, and CEO of Taubman Centers. “This purchase is consistent with our strategy to own high quality, dominant assets in great markets.”
”This investment represents the latest example of Macerich’s continuing strategy of recycling capital out of slower-growth assets, including Panorama Mall which we recently sold for $100 million, into truly irreplaceable, market-dominant centers with stronger growth prospects,” said Arthur Coppola, chairman and CEO of Macerich. “Together with Taubman, we see opportunities to expand the market reach of the Plaza as well as the potential for further retail densification of this timeless asset.”
The transaction has been approved by the boards of directors of Taubman and Macerich. It is subject to usual and customary closing conditions and is expected to close in first quarter 2016.