Macerich takes full ownership of five former Sears boxes

No Supreme Court visit necessary for Macerich.

The big Santa Monica, Calif.-based regional mall and center owner has acquired the remaining 50% interest in five former Sears boxes from Seritage Growth Properties and henceforth wholly owns and controls them.

In April, Triple Five’s Mall of America won a Supreme Court decision that forbid Eddie Lampert’s Transform Leaseco—which held a $10-a-year lease on the empty Sears box there—to control leasing of the property.

“Macerich is pleased to gain full ownership and control of these former Sears boxes, all located in terrific suburban U.S. markets,” said Dave Short, Macerich’s executive VP of asset management.

The five Sears boxes are located at Danbury Fair in Connecticut, Los Cerritos Center in California, Washington Square in Oregon, Chandler Fashion Center in Arizona, and Freehold Raceway Mall in New Jersey. Total GLA of the five former Sears boxes is approximately 819,000 sq. ft.

“This transaction allows us to continue to pursue redevelopment of these properties in any number of ways, including adding mixed-use and greater density, which is a hallmark of Macerich’s regional town center strategy of bringing in highly productive retail performers,” Short said.

At Danbury Fair, the former Sears space is already leased to Target and Primark. Primark is open and operating, while Target is under construction and set to open in spring 2024.

Primark is open, as well, at the Sears box at Freehold Raceway and performing well there, reports Macerich.

At the remaining three properties, Macerich states it will use the Sears spaces to add density with residential components and new uses such as fitness, hotel, office, and medical uses.

Macerich owns 47 million sq. ft. of real estate consisting primarily of interests in 44 regional centers.