StreetMac Asset Managers Acquire Texas and Oklahoma Malls

Northbrook, IL, October 14, 2011 --( StreetMac Asset Managers, LLC, a Northbrook, Illinois-based asset management and financial services firm, announced that an affiliate has purchased the Brazos Mall in Lake Jackson, Texas and the Shawnee Mall in Shawnee, Oklahoma through a joint venture with an affiliate of Stamford, Connecticut-based Five Mile Capital Partners LLC.

The two malls have a combined 1.14 million square feet of leasable retail space. Terms were not disclosed. The acquisitions represent StreetMac’s inaugural purchases of retail malls in markets nationwide.

Chicago’s Urban Retail Properties, LLC will serve as the property manager and leasing agent for both malls. With specialized expertise in regional shopping centers, Urban has a current management and leasing portfolio of approximately 18 million square feet nationwide and extensive management experience in the greater Oklahoma City and Houston markets, where the Brazos and Shawnee malls are located.

Both malls were previously owned by Lightstone Properties, which had purchased them in 2004 and operated them through 2011 when the first mortgage loan was foreclosed. As part of the acquisition of the two malls, the joint venture secured a new first mortgage loan at a loan-to-value ratio of less than 60 percent, along with substantial leasing and capital reserves.

“StreetMac’s core focus is to acquire and operate retail properties and malls in markets nationwide where such properties have suffered from the overall decline in the economy, resultant overleverage and lack of capital. As restructured, the Brazos and Shawnee malls represent the types of transactions where our team’s expertise and experience can support and attract new tenants for sustained retail growth,” says David Jackson, president and chief executive officer, StreetMac Asset Managers.

Brazos Mall

Located in Lake Jackson, Tex., 50 miles south of Houston, Brazos Mall is a one-story regional shopping center that was built in 1976 and contains 682,831 square feet of leasable area on a 75-acre parcel. Its anchor tenants include Dillard’s, JCPenney, Sears and the Starplex Cinema, with junior anchors that include Ross, Palais Royal and Powerhouse Gym.

In addition to its anchor tenants, Brazos Mall has approximately 60 stores and restaurants totaling 174,618 square feet of retail space and is currently 80 percent occupied.

The mall underwent a renovation in 2006 that featured a 10,000-square foot expansion, movie theater addition, food court construction, parking lot recoating, flooring replacement, and upgrades to the exterior facade and interior fixtures.

Shawnee Mall

Located 40 miles east of Oklahoma City, Shawnee Mall in Shawnee, Okla. is a one-story regional shopping center with 453,861 square feet of leasable area on a 71-acre parcel. In addition to its anchor tenants of Dillard's, JCPenney, Kohl’s and Sears, Shawnee Mall has approximately 40 stores and restaurants totaling 145,048 square feet and is currently 91 percent occupied.

The Brazos and Shawnee properties are currently demonstrating improving performance with increasing sales per square foot and occupancy rates. In December 2010, Kohl’s executed a new lease at Shawnee Mall for 64,116 square feet while both malls have maintained existing core tenants. StreetMac attributes much of the properties’ stability and economic results to the oil and gas industries, which are major drivers of economic activity and employment in both markets.

“During the past 18 months, we have assembled a highly specialized and experienced finance, commercial real estate and retail management group within StreetMac. Our alliances with Five Mile Capital Partners and Urban Retail Properties provide stronger leverage and leasing management expertise in support of our long-term objectives,” said Jackson. “Through additional acquisitions, we expect to double StreetMac’s retail space under management within a year to 2.5 million square feet. With our team’s operational and capital structures, we can develop and implement transactions to relieve the financial distress many malls are encountering as a result of the lingering economic recession.”

StreetMac Asset Managers, LLC

Based in Northbrook, Illinois, StreetMac Asset Managers is an affiliate of StreetMac, LLC, which was founded in 2007 to create and bring new financial products to the commercial real estate marketplace. StreetMac Asset Managers acquires and operates retail properties, and acts as an advisor to major national entities for acquiring notes and real estate.

Five Mile Capital Partners LLC

Established in 2003 with headquarters in Stamford, Connecticut and offices in New York City, the firm is an alternative investment and asset management company with approximately $2 billion in assets under management. The firm's principals have significant experience, knowledge and skills relevant to the real estate and financial industries and specialize in investment opportunities in asset-based lending, real estate, debt products, structured finance and financial services private equity.

StreetMac, LLC
David Jackson