Owner of Crossroads, Rivertown Malls Sold In Billion Dollar Deal
Bloomberg reports Canadian real estate company Brookfield Property Partners, taking advantage of mall owners that are struggling in the battle with e-commerce, has bought the remainder of General Growth Properties. Chicago based General Growth Properties owns Portage's Crossroads Mall and Grandville's Rivertown Crossings, which is the largest mall in the region. General Growth is the second largest mall owner in the country. TheRealDeal.com is reporting Brookfield is buying the remaining 66 percent of GGP it doesn't currently own.
Three of Crossroads' anchor stores are all experiencing varying levels of financial distress, with Sears, Macy's and J.C. Penney struggling from quarter to quarter. The fourth anchor in Portage, Burlington Coat Factory seems to be benefiting from the struggles of the other three, but the company is privately held, so it's hard to say for sure.
CNBC reports General Growth has already started trying to change the focus of its properties, away from fashion retailers and more towards food and entertainment. What's interesting is the children of the 1980's and 90's, who grew up spending a lot of time in malls, even being referred to as "mall rats" are now the same consumers who are avoiding these same malls for the convenience of online shopping.