This REIT Just Sold a High-End Mall for Nothing: What It Means
Last week, Crain's Chicago Business reported that Macerich (NYSE: MAC) had sold its 50% stake in Chicago's high-end Shops at North Bridge mall to its joint venture partner for a pittance. A few days later, the prominent mall owner's annual report confirmed the news. Yet this somewhat surprising development isn't as bad as it might appear for Macerich. Let's take a look.
As Macerich stated in its 2021 annual report, the mall REIT "assigned its joint venture interest in The Shops at North Bridge in Chicago, Illinois to its partner in the joint venture." Macerich's JV partner (the Alaska Permanent Fund) assumed Macerich's share of the property's mortgage but didn't pay a dime beyond that for the mall itself.
Macerich also sold its 50% stake in an adjacent parcel (once intended for a mall addition) to the Alaska Permanent Fund. It received $21 million for that property, which wasn't mortgaged.
Source Fool.com
