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METROCENTER MALL SOLD OUT OF RECEIVERSHIP TO NEW YORK INVESTOR

Phoenix - Carlyle ER Metro LLC, a company formed by Carlyle Development Group in White Plains, N.Y. (Abdi Mahamedi, principal), paid $12.2 million ($23.23 per foot) to purchase 525,227 sq. ft. of retail space within the Metrocenter Mall in Phoenix. The seller in the cash transaction was Douglas P. Wilson of San Diego, Calif., as court appointed receiver. The deal was brokered by Ryan Schubert, Michael Hackett, Eric Wichterman and Mike Coover of Cassidy Turley BRE Commercial in Phoenix, and Thomas Dobrowski of Rockwood Real Estate Advisors in New York City, N.Y. The purchase did not include department stores occupied by Macy's, Sears and Dillard's and two other anchor spaces formerly occupied by JC Penney and Robinson’s-May. All of the anchor spaces are owned separately. Metrocenter Mall, which was developed by Westcor Partners in Phoenix, is located along the west side of Interstate 17 and between Peoria Avenue on the north and Dunlap Avenue on the south. The space acquired by Carlyle Development is 70+ percent occupied. No word on leasing assignment. Originally built in 1974, Metrocenter was renovated in 2007. Sources say the previous owner spent $32 million to upgrade the mall. After that renovation, the mall was valued at $220+ million. Metrocenter had been owned by a venture formed by AEW Capital Management L.P. in Boston, Mass. and The Macerich Co. in Santa Monica, Calif. (NYSE:MAC). Metrocenter Mall was put into receivership after that entity defaulted on loans secured by the retail development. Sources say the mall was encumbered by a commercial mortgage backed security (CMBS) of $110 million and another $30 million in mezzanine financing. Macerich, a publicly-traded real estate trust (REIT), purchased Westcor and its real estate holdings in July 2002. The investment is the first in the Valley for Carlyle Development. The privately-held company acquires, develops and manages residential and commercial properties in the U.S. on behalf of foreign investors. Carlyle Development is looking for additional investment opportunities in the Valley. The contact at Carlyle Development is Tom Fear . . . call him at (914) 694-6760. Reach the Cassidy Turley agents at (602) 954-9000. Dobrowski is at (212) 288-5800.




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