Rouse Properties, Inc.RSE disclosed the acquisition of Westfield Carlsbad in Carlsbad, CA for $170 million, excluding transaction costs and closing adjustments. The company also revealed its plans for renovating and rebranding this 1.1-million-square-foot super-regional enclosed mall in Carlsbad as a one-stop shopping, dining and entertainment destination.
This acquisition is a strategic fit for Rouse Properties given that the center is located just off Interstate 5 - the main north/south corridor in the state. It serves a dense and affluent trade area of around 500,000 people with an average income of $84,000, which will give the company ample opportunity to leverage on the thriving neighborhood.
Moreover, Carlsbad is one of the favorite seaside resort cities of Southern California with nearly three million tourists visiting annually. Rouse expects its restoration plans to help the property gain popularity in the prime retail landscape of the Carlsbad market.
As many as 150 renowned retailers such as Macy's Inc. M , Forever 21, Victoria's Secret and Panera Bread Company PNRA already occupy space in this center. There are also entertainment and lifestyle tenants like a 12-screen Regal Cinemas and a 24-Hour Fitness outlet.
This acquisition is in sync with Rouse's policy of expanding its California portfolio. The renovation work is anticipated to boost rental rates, occupancy levels, leasing volumes as well as sales productivity at the property, driving significant top-line growth at Rouse.
Rouse currently has a Zacks Rank #2 (Buy). Investors interested in the retail REIT industry may also consider Simon Property Group Inc. SPG , carrying the same rank as Rouse.
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PANERA BREAD CO (PNRA): Free Stock Analysis Report
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MACYS INC (M): Free Stock Analysis Report
ROUSE PROPERTS (RSE): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
