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General Growth affiliate acquires Houston mall

HOUSTON — GGP/Homart II LLC, an affiliate of Chicago-based General Growth Properties, has acquired Willowbrook Mall for $144.9 million from a pension account managed by Atlanta-based Lend Lease Real Estate Investments. GGP/Homart II is a 50/50 joint venture with the New York State Common Retirement Fund.

GGP/Homart used a new $102 million fixed-rate nonrecourse 10-year mortgage at 6.93%, as well as a short-term variable-rate loan priced at LIBOR plus 75 basis points to fund the acquisition. The property is expected to produce approximately $12.9 million of net operating income during the next 12 months.

Willowbrook Mall was originally developed in 1981 and was extensively remodeled in 1992. The one-level, 1.53 million sq. ft. mall is anchored by Dillard’s, Foley’s, JCPenney, Lord & Taylor and Sears. The new owners anticipate that the May Co. will operate one of its divisions in a former Montgomery Wards location in the mall. The center has 423,000 sq. ft. of mall shop space, is 92.5% occupied and produces sales of about $430 per sq. ft.

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