Northlake Mall, one of Charlotte’s largest retail centers, is set to be sold to a private real estate investment firm as part of a package deal, owner Taubman Centers Inc. said Wednesday.
The transaction is valued at $1.4 billion, and includes malls in Texas, Virginia, Michigan and Florida in addition to Northlake. New owner Starwood Property Group is set to close the deal in the fourth quarter this year, Taubman officials said.
“Given today’s investor interest in high quality regional malls, we have taken advantage of the opportunity to further enhance our growth and valuation,” CEO said Robert Taubman said.
Northlake is a 1.1 million-square-foot, 150-store mall, making it the fourth-largest mall in the Charlotte region, after SouthPark, Concord Mills and Carolina Place. The north Charlotte mall was completed in 2005, meaning it was also the Charlotte region’s most recently completed enclosed shopping mall.
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Starwood Capital manages $36 billion worth of assets, focused on real estate. The firm’s Starwood Retail Partners subsidiary will have 28 properties across 15 states once the acquisition of Taubman’s seven malls is complete.
In a presentation to investors Wednesday, Taubman said its “remaining portfolio will be significantly enhanced” after it sells Northlake and the other six malls, and that it will retain malls with better demographics, higher sales per square foot and stronger operating statistics.