Private equity firm GI Partners has sold its majority stake in a 1.7 million-square-foot shopping mall in the north Denver market for nearly $400 million. The sale represents a return of twice the capital invested.
A statement by Menlo Park, California-based GI Partners revealed that the firm sold its 75 percent ownership stake in FlatIron Crossing in Broomfield, Colorado to its joint venture partner, Macerich. Although GI Partners declined to disclose terms of the deal, data provider Real Capital Analytics lists the closing price at $388.3 million.
GI Partners invested in FlatIron Crossing in 2009, acquiring its 75 percent interest in the Class A shopping centre from Macerich on behalf of its GI Partners Fund III. The Santa Monica, California-based REIT remained the operating partner in the venture. The sale of FlatIron Crossing generated a return of approximately two times invested capital and more than a 25 percent gross IRR to Fund III’s LPs.
Rick Magnuson, executive managing director of GI Partners, said in the statement: “We structured a transaction with Macerich after the financial markets collapsed to navigate the downturn by securing the long-term tenancy of numerous marquee tenants.”
Developed in 2000 by Macerich, FlatIron Crossing is anchored by such national retailers as Nordstrom, Dillard’s and Macy’s, as well as junior anchors Dick’s Sporting Goods, Crate & Barrel and The Container Store. It also is occupied by more than 200 other shops and restaurants.