Rouse Properties, Inc. (NYSE:RSE) announced it closed on the acquisition of the Mall at Turtle Creek and an adjacent shopping center, Turtle Creek Crossing, from a private partnership led by David Hocker, for a total purchase price of approximately $96.3 million, excluding transaction costs.
“We are extremely pleased to complete the acquisition of the Mall at Turtle Creek, further demonstrating our ability to identify and acquire market dominant and protected malls across the U.S.,” said Andrew Silberfein, president and chief executive officer of Rouse Properties. “The Mall at Turtle Creek is well-located, with a track record of strong operating performance. As one of the last enclosed malls constructed prior to the recession, this newer vintage property presents a solid opportunity for Rouse to utilize its national platform to capture the inherent upside potential of the property. This asset further enhances the overall quality of our portfolio and continues to expand our retailer relationships. We intend to build upon the success of Mr. Hocker, and improve the operating metrics of this first-class enclosed mall.”
The Mall at Turtle Creek and Turtle Creek Crossing totals approximately 731,000 square feet and is located in Jonesboro, Arkansas. The single-level, enclosed mall, constructed in 2006, is anchored by Dillard's, JCPenney, and Target and is 91% leased. Rouse assumed an existing approximate $79.5 million non-recourse loan, which matures in June, 2016.
The Mall at Turtle Creek conforms to the Company’s stated principal strategy of acquiring market dominant and protected malls. With the nearest enclosed mall located over 75 miles away, the property serves as a regional shopping destination for Northeastern Arkansas, offering the most comprehensive retail selection in its expansive trade area, with such key retailers as Victoria’s Secret, Buckle, Chico’s, American Eagle, Francesca’s, Aeropostale and Bath and Body Works.
Jonesboro is the largest city between Little Rock, St. Louis and Memphis and serves as a regional center for manufacturing, agriculture, medicine, education, and trade. Home to Riceland Foods, Frito-Lay, ConAgra Foods, Kraft Foods/Post Division, and Nestle, the region is an agricultural center for processing rice, cotton, and soybeans, and a regional hub for food processing. In addition, Arkansas State University is located less than two miles away from the mall.