Middle-market buyout shop GI Partners said that it has sold its 75% ownership stake in FlatIron Crossing, a regional mall located in Broomfield, Colo. The buyer is public real estate investment trust Macerich, GI Partner’s partner in the joint venture. According to the firm, the sale generated a return of approximately two times invested capital and over a 25% gross internal rate of return to limited partners of GI Partners Fund III, L.P.
GI Partners (“GI”), a leading mid-market private equity firm, announced today the sale of its 75% ownership stake in FlatIron Crossing, a 1.7 million square foot class-A regional mall located in Broomfield, CO, to its joint venture partner, Macerich (NYSE:MAC), a public real estate investment trust. GI Partners invested in FlatIron Crossing in 2009, acquiring its 75% interest in the mall from Macerich, who remained the operating partner in the venture. The sale of FlatIron Crossing generated a return of approximately two times invested capital and over a 25% gross internal rate of return to limited partners of GI Partners Fund III, L.P.
Developed in 2000 by a Macerich subsidiary, FlatIron Crossing is widely recognized as the premier enclosed mall serving the north Denver market. The mall is anchored by leading retailers including Nordstrom, Dillard’s, and Macy’s, as well as junior anchors Dick’s Sporting Goods, Crate & Barrel, and The Container Store, and is also joined by more than 200 shops and restaurants. In addition to its retail tenants, the property houses 30 acres of parks landscaped with native plants, streams, waterfalls, and trails that enhance the Colorado shopping experience.
Rick Magnuson, Executive Managing Director of GI Partners, said, “Our very successful partnership with Macerich in FlatIron Crossing is a further demonstration of our compelling track record of working with best-in-class management teams to proactively implement measures that recognize the full inherent value of world-class assets. We structured a transaction with Macerich after the financial markets collapsed to align our interests and collaboratively navigate the downturn by securing the long-term tenancy of numerous marquee tenants. Macerich is well-positioned to continue developing the amenities of this dominant North Denver mall for sustained long-term growth and success.”
Macerich is a fully integrated self-managed and self-administered real estate investment trust, which focuses on the acquisition, leasing, management, development and redevelopment of regional malls throughout the United States. Additional information about Macerich can be obtained from the Company’s Web site at www.macerich.com.
About GI Partners
Established in 2001, GI Partners is a leading private investment firm with investments in North America and Western Europe. In addition to focusing on and improving location-based businesses, the firm has a successful track record of investing in asset-intensive companies in the technology, healthcare services, and real estate services sectors. Previous and existing investments include Sunset Gower Studios, Waypoint Real Estate Group, Digital Realty Trust (NYSE:DLR) and SoftLayer Technologies. Since inception, the firm has managed approximately $8.5 billion of equity capital commitments from recognized institutional private equity and real estate investors in the U.S., Europe, Asia, and the Middle East.