Biltmore Fashion Park sold by Macerich

Article originally posted on Phoenix Business Journal on August 1, 2024

As it reported its second quarter earnings, executives at Macerich Co. made a significant announcement: that it has sold its 50% stake of Biltmore Fashion Park to a regular project partner, Red Development, which now takes full ownership of the shopping center.

“Red Development is honored to acquire full ownership of Biltmore Fashion Park, now making one of the state’s most important and historical properties into a locally owned and operated landmark,” said Mike Ebert, managing partner of Red Development in a statement to the Phoenix Business Journal. “We’re grateful to Macerich for this incredible opportunity and for the years of collaboration and partnership. We look forward to unveiling our plans for the next chapter of this iconic destination soon.”

The deal, which Macerich (NYSE: MAC) President and CEO Jack Hsieh said closed in the hour before the earnings call on July 31, reduced $110 million in debt at the company. The sale is in line with a company goal to reduce debt by $2 billion; Santa Monica, California-based Macerich expects to end the year with between $1 billion and $1.4 billion of debt reduction.

“That project had entitlements to increase office density on the project. As you know, we added a new Life Time Fitness into that location. Over time that was going to have a more balanced retail mixed use component to that overall project,” Hsieh said in response to a question from an investor. “In our judgment, we felt like, that was a good way to raise liquidity. It’s good for our partner.”

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