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Acquisitions:
 3 Months Ended
Mar. 31, 2012
Acquisitions:  
Acquisitions:

15. Acquisitions:

  • Desert Sky Mall:

        On February 28, 2011, the Company acquired the additional 50% ownership interest in Desert Sky Mall, an 893,863 square foot regional shopping center in Phoenix, Arizona, that it did not own for $27,625. The acquisition was completed in order to gain 100% ownership and control over this well located asset. The purchase price was funded by a cash payment of $1,875 and the assumption of the third party's pro rata share of the mortgage note payable on the property of $25,750. Concurrent with the purchase of the partnership interest, the Company paid off the $51,500 loan on the property. Prior to the acquisition, the Company had accounted for its investment under the equity method (See Note 4—Investments in Unconsolidated Joint Ventures). As a result of this transaction, the Company obtained 100% ownership of Desert Sky Mall.

        The following is a summary of the allocation of the fair value of Desert Sky Mall:

Property

   $ 46,603  

Deferred charges, net

     5,474  

Cash and cash equivalents

     6,057  

Tenant receivables

     202  

Other assets, net

     4,481  
       

Total assets acquired

     62,817  
       

Mortgage note payable

     51,500  

Accounts payable

     33  

Other accrued liabilities

     3,017  
       

Total liabilities assumed

     54,550  
       

Fair value of acquired net assets (at 100% ownership)

   $ 8,267  
       

        The Company determined that the purchase price represented the fair value of the additional ownership interest in Desert Sky Mall that was acquired. Accordingly, the Company also determined that the fair value of the acquired ownership interest in Desert Sky Mall equaled the fair value of the Company's existing ownership interest.

Fair value of existing ownership interest (at 50% ownership)

   $ 4,134  

Carrying value of investment in Desert Sky Mall

     (2,296 )
       

Gain on remeasurement

   $ 1,838  
       

        Since the date of acquisition, the Company has included Desert Sky Mall in its consolidated financial statements.

  • Superstition Springs Land:

        On June 3, 2011, the Company acquired the additional 50% ownership interest in Superstition Springs Land that it did not own in connection with the GGP Exchange (See Note 4—Investments in Unconsolidated Joint Ventures). Prior to the acquisition, the Company had accounted for its investment in Superstition Springs Land under the equity method. As a result of this transaction, the Company obtained 100% ownership of the land.

        The Company recorded the fair value of Superstition Springs Land at $12,914. As a result of obtaining control of this property, the Company recognized a gain of $1,734, which is included in gain on remeasurement, sale or write down of assets, net for the year ended December 31, 2011. Since the date of acquisition, the Company has included Superstition Springs Land in its consolidated financial statements.

  • Fashion Outlets of Niagara:

        On July 22, 2011, the Company acquired Fashion Outlets of Niagara, a 529,059 square foot outlet center in Niagara Falls, New York. The initial purchase price of $200,000 was funded by a cash payment of $78,579 and the assumption of the mortgage note payable with a carrying value of $121,421 and a fair value of $130,006. The cash purchase price was funded from borrowings under the Company's line of credit.

        The purchase and sale agreement includes contingent consideration based on the performance of Fashion Outlets of Niagara from the acquisition date through July 21, 2014 that could increase the purchase price from the initial $200,000 up to a maximum of $218,667. The Company estimated the fair value of the contingent consideration as of March 31, 2012 to be $15,098, which has been included in other accrued liabilities as part of the fair value of the total liabilities assumed.

        The following is a summary of the allocation of the fair value of Fashion Outlets of Niagara:

Property

   $ 228,720  

Restricted cash

     5,367  

Deferred charges

     10,383  

Other assets, net

     3,090  
       

Total assets acquired

     247,560  
       

Mortgage note payable

     130,006  

Accounts payable

     231  

Other accrued liabilities

     38,037  
       

Total liabilities assumed

     168,274  
       

Fair value of acquired net assets

   $ 79,286  
       

        The Company determined that the purchase price, including the estimated fair value of contingent consideration, represented the fair value of the assets acquired and liabilities assumed. Since the date of the acquisition, the Company has included Fashion Outlets of Niagara in its consolidated financial statements.

  • SDG Acquisition Properties:

        On December 31, 2011, the Company acquired the SDG Acquisition Properties as a result of the SDG Transaction. The Company completed the SDG Transaction in order to gain 100% control of the SDG Acquisition Properties. In connection with the acquisition, the Company assumed the mortgage notes payable on Eastland Mall and Valley Mall. Prior to the acquisition, the Company had accounted for its investment in SDG Macerich under the equity method (See Note 4—Investments in Unconsolidated Joint Ventures). As a result of this transaction, the Company obtained 100% ownership of the SDG Acquisition Properties.

        The following is a summary of the allocation of the fair value of the SDG Acquisition Properties:

Property

   $ 371,344  

Tenant receivables

     10,048  

Deferred charges

     30,786  

Other assets, net

     32,826  
       

Total assets acquired

     445,004  
       

Mortgage notes payable

     211,543  

Accounts payable

     10,416  

Other accrued liabilities

     18,578  
       

Total liabilities assumed

     240,537  
       

Fair value of acquired net assets

   $ 204,467  
       

        The Company determined that the purchase price represented the fair value of the assets acquired and liabilities assumed. Since the date of the acquisition, the Company has included the SDG Acquisition Properties in its consolidated financial statements.

  • Capitola Kohl's:

        On April 29, 2011, the Company purchased a fee interest in a freestanding Kohl's store at Capitola Mall for $28,500. The purchase price was paid from cash on hand. Since the date of acquisition, the Company has included Capitola Kohl's in its consolidated financial statements.

  • 500 North Michigan Avenue:

        On February 29, 2012, the Company acquired a 324,000 square foot mixed-use retail/office building in Chicago, Illinois ("500 North Michigan Avenue") for $70,925. The purchase price was funded from borrowings under the Company's line of credit. The acquisition was completed in order to gain control over the property adjacent to The Shops at North Bridge.

        The following is a summary of the allocation of the fair value of 500 North Michigan Avenue:

Property

   $ 66,033  

Deferred charges

     7,450  

Other assets, net

     2,143  
       

Total assets acquired

     75,626  
       

Other accrued liabilities

     4,701  
       

Total liabilities assumed

     4,701  
       

Fair value of acquired net assets

   $ 70,925  
       

        The Company determined that the purchase price represented the fair value of the assets acquired and liabilities assumed.

        Since the date of acquisition, the Company has included 500 North Michigan Avenue in its consolidated financial statements. The property has generated incremental revenue of $896 and incremental expense of $1,023.