Macerich Co. on Monday said it has agreed to buy two shopping malls in Long Island and Brooklyn for a total $1.25 billion in effort to expand its presence in the New York metro market
The Santa Monica real estate investment trust will buy the Green Acres Mall in the Long Island community of Valley Stream for $500 million from Vornado Realty Trust of New York City. It also is buying Kings Plaza in Brooklyn from a subsidiary of Vornado affiliate Alexander’s Inc. for $751 million.
Macerich said that it plans to reduce vacancies and attract retailers prepared to pay higher rents at the two new properties. Kings Plaza anchors include Macy’s and Lowe’s. Green Acres’ anchors include Macy’s, Kohl’s and Wal-Mart.
“These transactions are consistent with our investment strategy of acquiring assets in the major markets where we have our best assets and selling non-core assets and recycling capital,” Chief Executive Arthur Coppola said in a statement.
Macerich shares closed down $1.43, or nearly 2.5 percent, to $57.48 on the New York Stock Exchange.