After spending over three years on the market, the wait is over for Raleigh’s Crabtree Valley Mall, which has found a buyer in Macerich Company. The Santa Monica-based real estate investment trust has made a $290 million acquisition of the mall, as reported by CBS17.
The property on Glenwood Avenue, just outside the Beltline, has thus transitioned from CVM Holdings LLC, which had been the owner since 2002 according to Wake County property records. Details of the sale were made public on Tuesday, as sourced from WRAL.
Macerich plans to breathe new life into the mall with a robust strategic investment plan. Announced as part of their commitment, Macerich will implement nearly $60 million in redevelopment and leasing capital over the next three years, aiming to enhance the mall's performance, as reported by CBS17. As the largest mall in the North Carolina Research Triangle area, Crabtree boasts over 1.3 million square feet with more than 200 tenants. This hub of commerce, anchored by Belk and Macy's, records about $429 million in sales annually.
In their statement, which was obtained by CBS17, Macerich President and CEO Jack Hsieh expressed confidence in the acquisition. "Crabtree checks all the boxes for pursuing opportunistic external growth with its strong traffic and sales, its market-dominant position in a high-growth market, the ability to drive improvements in permanent leasing, and NOI [net operating income], as well as the accretion to our 2028 target FFO ranges under the Path Forward Plan," he said.
Hsieh believes that the mall's strategic location offers Macerich a valuable foothold in the Southeastern U.S. Ensuring an entry point, he emphasized that Crabtree will form a key part of their Go-Forward Portfolio. "Macerich’s proven leasing, management, and redevelopment capabilities will reinvigorate leasing momentum at Crabtree, create a more inviting, and refreshed ambiance and reinforce Crabtree’s longstanding reputation within the community," Hsieh revealed in his statement published on CBS17.
