The Macerich Company (NYSE: MAC) acquired Crabtree Mall, a Class A retail center totaling approximately 1.3 million square feet in Raleigh, NC for $290 million. The mall has 200 stores, dozens of restaurants, and three anchors.

Macerich expects an initial yield on the Crabtree acquisition of approximately 11% based on the property’s estimated 2025 net operating income (“NOI”) and an estimated yield of approximately 12.5% inclusive of current leases signed but not opened, with rent expected to commence in 2027. Over the course of 2025 through 2028, the Company plans to implement a strategic investment plan at the property totaling approximately $60 million of new redevelopment and leasing capital to maximize the center’s performance.

Macerich has funded the acquisition with cash on hand and $100 million of borrowings on its revolving line of credit. The Company expects to repay borrowings on the revolving line of credit within 30 days with the proceeds from an expected $160 million two-year term loan.