Macerich Weighs Office, Retail Renovations

(Ian Ritter is national online editor for GlobeSt.com/RETAIL.)

SANTA MONICA, CA-The locally based Macerich Co. has many redevelopment projects in its pipeline, from coast to coast, executives revealed during their quarterly conference call. Opportunities range from future vacancies that will be left by Federated Department Stores to the addition of high-rise towers and malls.

About 10 Macerich centers have Federated stores that will be closed due to duplication after that retailer’s merger earlier this year with May Department Stores, said Arthur Coppola, the company’s president and CEO. The vacancies will “trigger and accelerate some very exciting redevelopments and expansion opportunities,” he stated.

The REIT is currently in approvals for the addition of high rises to Tysons Corner Center, in McLean, VA, as well as Washington Square in Portland, OR. The towers could have residences, offices or a combination of both. Tysons Corner is now at 2.3 million sf, after a recent 362,000-sf expansion.

Later this month an 80,000-sf lifestyle center expansion will open at Washington Square, also in Portland, bringing it to just over 1.3 million sf. In addition, Macerich executives are considering another addition at Queens Center in Elmhurst, NY, which had nearly 400,000 of additional space added last year.

As for new developments, the REIT is working on two in Arizona that will each cost more than $200 million. The company will break ground next year on San Tan Village, a 1.5-million-sf open-air center in Gilbert with Dillard’s and Harkins Theatres as anchors. In Goodyear the company plans to open in 2009 Estrella Falls, a 1.2-million-sf regional mall.

During its third quarter, which ended Sept. 30, Macerich’s FFO jumped 9% from the same year-ago period, to $1.05 per share. Occupancy rose to 93.4%, up from 91.8%. Same-center sales were up 7% from last year’s Q3. Macerich owns 75 regional centers across the country.