Mills Corp. Gains Del Amo Center Partner
The Mills Corp. has sold half of its interest in the Del Amo Fashion Center mall to JPMorgan Fleming Asset Management for $244.5 million. Mills acquired the Torrance, Calif.–based shopping center from a private party in June 2003 for $442 million.
The transaction gives the shopping center developer cash to reduce its debt and build on other developments. Mills will take a managing position in the joint venture, receiving customary development, leasing and property management fees.
Mills and JPMorgan said they intend to finish out a previously planned 403,000- square-foot renovation of the mall. The renovation, expected to improve Del Amo’s marketability, will add an AMC Theatres complex, a day spa, restaurants and a gourmet food market to the center.
Mills sold a 50 percent share in the Ontario Mills center to JPMorgan earlier this year.
Retail real estate has been a bright spot for institutional investors recently. Del Amo is an attractive target, achieving more than $400 in sales per square foot a year. The retail destination, with 2.1 million square feet of gross leasable space, is one of the three largest shopping centers in the country, according to the International Council of Shopping Centers. Macy’s, Robinsons-May and Sears, Roebuck and Co. anchor the mall.
“This transaction will enable The Mills Corp. to pull capital out of this asset while retaining substantial upside in the redevelopment opportunity through the deal’s promoted structure,” said Mark Ettenger, president of Mills. —Robert McAllister
