Raleigh's Crabtree Valley Mall sells for $290 million
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A man waits inside Crabtree Valley Mall in 2010. Photo: Shawn Rocco/Raleigh News & Observer/Tribune News Service via Getty Images
Crabtree Valley Mall, once Raleigh's dominant shopping destination before a wave of competition was built, has been acquired for $290 million by the California real estate company Macerich.
Why it matters: Crabtree Valley Mall has been on the selling block for several years, after its owner, CVM Holdings, considered and then abandoned plans to redevelop the mall into a mixed-use destination.
- Redevelopment at the mall has long been complicated by the facility's location next to Crabtree Creek, which is prone to flooding.
The big picture: While still home to several attractive tenants — including an Apple Store, a Barnes & Noble and a LEGO store — Crabtree Valley Mall, which opened in 1972, faces more competition across the Triangle to attract shoppers.
- There is increasing pressure for large indoor malls to redevelop into mixed-use destinations that seamlessly mix office and residential space with shopping and dining.
- In the Triangle, Kane Realty has transformed North Hills into such a destination, and The Fenton in Cary has attracted several top retailers and restaurants, from Lululemon to Crawford Brothers Steakhouse.
- Other malls, like Streets at Southpoint in Durham, South Hills in Cary and University Place in Chapel Hill, are either undergoing redevelopment or have made plans to.
Driving the news: Jack Hsieh, CEO of Macerich, praised Crabtree's central location in the Raleigh market in its release announcing the acquisition of the property and promised to "reinvigorate" the mall.
- "Macerich's proven leasing, management and redevelopment capabilities will reinvigorate leasing momentum at Crabtree, create a more inviting and refreshed ambiance and reinforce Crabtree's longstanding reputation within the community," he said in a statement.
- The company, which operates malls like Tysons Corner Center outside Washington, D.C., has not yet responded to a request for comment.
What's next: In its release, the company said it will invest $60 million into new redevelopment and leasing capital at the mall over the next three years.