Rouse Properties Inc., a publicly traded New York real estate investment trust that owns more than 31 malls across the country, announced Wednesday that it has closed on its $96.3 million acquisition of Jonesboro's Mall at Turtle Creek, which Arkansas Business first reported in November.
The deal includes an adjacent shopping center, Turtle Creek Crossing. Rouse purchased the two properties from a private partnership led by David Hocker.
The purchase price does not include transaction costs, the company said.
"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.," Andrew Silberfein, Rouse president and CEO, said in a news release.
"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."
The company said both properties total about 731,000 SF. The single-level enclosed mall, which sits on a 73-acre site at Highland Drive and Stadium Boulevard, was built in 2006 and is anchored by Dillard's, JCPenney and Target. Rouse the project is 91 percent leased.
The purchase price includes taking over the mall’s $79.5 million mortgage. Rouse has set aside $10 million for a deposit.
Rouse said the deal is part of its strategy to buy "market dominant and protected malls." The nearest enclosed mall is located more than 75 miles away and is considered a regional shopping destination in northeast Arkansas. Retailers include Victoria's Secret, Buckle, Chico's, American Eagle, Francesca's, Aeropostale and Bath and Body Works.
Savills represented Turtle Creek Partners LLC, a private partnership composed of David and Talmage Hocker, Marty Belz and Bruce Burrow, the seller on the transaction.