Rouse Properties, in a joint venture with David Hocker & Associates Inc. has purchased The Mall at Barnes Crossing.
This is an enclosed regional mall located in Tupelo, Miss., which measures 670000ft². Rouse has not only gained a 51% share in the property, it will also take over the role of managing member of the joint venture. The acquisition includes the purchase of Market Center, which is a 60000ft² center bordering The Mall.
This purchase is Rouse’s 36th mall in its 23rd state and is evident of the goal of the corporation to upgrade and build on diversification of its asset base across the US. The strengths of the joint venture will allow them to improve sales and offer an optimized combination of retail mix at both properties. Rouse has reported operation fund of $15.2m for Q2 2014, compared to $5.9m for the previous year. It has a successful track record in the renovation of malls. It obtained the Bel Air Mall in Mobile during May, which cost $135m. It intends to undertake cosmetic renovations, with improvements to some of the entrances of the mall. It is expected that The Mall at Barnes Crossing will follow the same procedure.
The Mall is situated at 1001 Barnes Crossing Road, with anchors including Cinemark, Barnes & Noble, Dick’s Sporting Goods, Sears, Belk Men’s and Home Store, Belk’s and JC Penney. It offers visitors retailers including Ulta, Bath & Body Works, Chico’s, Buckle, Victoria’s Secret and Ann Taylor Loft. The property, at point of sale, was 94.1% leased, with low occupancy costs and inline sales of around $360 per square foot. Market Center’s anchors include Shoe Carnival, Old Navy and Gap. The joint venture has also obtained a $67m, 10-year non-recourse loan at an interest rate of 4.29%. The Mall is placed within an area of trade in excess of 450000 people.