<SEC-DOCUMENT>0001104659-16-126521.txt : 20161014
<SEC-HEADER>0001104659-16-126521.hdr.sgml : 20161014
<ACCEPTANCE-DATETIME>20160610101530
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0001104659-16-126521
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20160610

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			MACERICH CO
		CENTRAL INDEX KEY:			0000912242
		STANDARD INDUSTRIAL CLASSIFICATION:	REAL ESTATE INVESTMENT TRUSTS [6798]
		IRS NUMBER:				954448705
		STATE OF INCORPORATION:			MD
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		401 WILSHIRE BLVD
		STREET 2:		STE 700
		CITY:			SANTA MONICA
		STATE:			CA
		ZIP:			90401
		BUSINESS PHONE:		3103946000

	MAIL ADDRESS:	
		STREET 1:		401 WILSHIRE BLVD SUITE 700
		CITY:			SANTA MONICA
		STATE:			CA
		ZIP:			90401
</SEC-HEADER>
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<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">June&nbsp;10, 2016</font></p>    </td>   </tr>  </table>
<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Mr.&nbsp;Robert F. Telewicz,&nbsp;Jr.</font></p>
<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Accounting Branch Chief</font></p>
<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Office of Real Estate and Commodities</font></p>
<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Securities and Exchange Commission</font></p>
<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">100 F Street, N.E.</font></p>
<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Washington D.C. 20549</font></p>
<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">RE:</font></b><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><font size="3" style="font-size:12.0pt;font-weight:bold;">The Macerich Company</font></b></p>
<p style="margin:0in 0in .0001pt;text-indent:.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">Form&nbsp;10-K for the year ended December&nbsp;31, 2015</font></b></p>
<p style="margin:0in 0in .0001pt;text-indent:.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">Filed February&nbsp;23, 2016</font></b></p>
<p style="margin:0in 0in .0001pt;text-indent:.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">File No.&nbsp;001-12504</font></b></p>
<p style="margin:0in 0in .0001pt;text-indent:.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">Form&nbsp;10-Q for the quarterly period ended March&nbsp;31, 2016</font></b></p>
<p style="margin:0in 0in .0001pt;text-indent:.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">Filed May&nbsp;6, 2016</font></b></p>
<p style="margin:0in 0in .0001pt;text-indent:.5in;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">File No.&nbsp;001-12504</font></b></p>
<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Dear Mr.&nbsp;Telewicz:</font></p>
<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">We are writing in response to your letter dated May&nbsp;24, 2016, setting forth the comment of the staff (the &#147;Staff&#148;) of the Securities and Exchange Commission (the &#147;Commission&#148;) on the Annual Report on Form&nbsp;10-K for the year ended December&nbsp;31, 2015 (the &#147;Form&nbsp;10-K&#148;) of The Macerich Company (the &#147;Company&#148;) and on the Quarterly Report on Form&nbsp;10-Q for the quarterly period ended March&nbsp;31, 2016 (the &#147;Form&nbsp;10-Q&#148;) of the Company. For your convenience, your comment is restated in italics prior to the Company&#146;s response to the comment below.</font></p>
<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt;"><i><u><font size="3" face="Times New Roman" style="font-size:12.0pt;font-style:italic;">Form&nbsp;10-Q for the quarterly period ended March&nbsp;31, 2016</font></u></i></p>
<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt;"><i><u><font size="3" face="Times New Roman" style="font-size:12.0pt;font-style:italic;">Note 4.&#160; Investments in Unconsolidated Joint Ventures, page&nbsp;11</font></u></i></p>
<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt .5in;text-indent:-.25in;"><i><font size="3" face="Times New Roman" style="font-size:12.0pt;font-style:italic;">1.</font></i><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><i><font size="3" style="font-size:12.0pt;font-style:italic;">We note that you have entered into joint ventures in which you own greater than 50% of the investee.&#160; For each of these investments, please provide us with a summary that identifies each such investee and provides the basis for your conclusions that you are not required to consolidate the entity despite your greater than 50% ownership interest.</font></i></p>
<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt 40.5pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">The Company evaluated its investment in Pacific Premier Retail, LLC (&#147;PPR&#148;), New River Associates LLC (&#147;Arrowhead Towne Center&#148;) and the Macerich HHF Centers LLC (&#147;MAC Heitman Portfolio&#148;) under Accounting Standards Codification 810-10 - Consolidation.&#160; The Company first determined that none of these investments was a variable interest entity as (1)&nbsp;the equity investment at risk for each entity was sufficient to finance the activities of each entity without additional subordinated financial support; (2)&nbsp;as a group, the holders of each of the equity investments at risk have (a)&nbsp;the power to direct the activities that most significantly impact each entity&#146;s economic performance, (b)&nbsp;the obligation to absorb expected losses, and (c)&nbsp;the right to receive expected residual returns; and (3)&nbsp;substantially all of the activities for each entity do not involve or are not conducted on behalf of an investor that has disproportionately fewer voting rights.</font></p>
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<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Mr.&nbsp;Robert F. Telewicz,&nbsp;Jr.</font></p>
<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Securities and Exchange Commission</font></p>
<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">June&nbsp;10, 2016</font></p>
<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Page </font><font size="3" style="font-size:12.0pt;">2</font><a name="PB_2_035112_2624"></a></p>
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<p style="margin:0in 0in .0001pt 40.5pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Therefore, the Company evaluated each of the three investments under the voting interest model. Under the voting interest model, the presumption is that a controlling financial interest in an entity is the ownership of a majority voting interest, directly or indirectly, of more than 50% of the voting shares.&#160; However, if noncontrolling shareholders or limited partners have substantive participation rights, then the majority shareholder or partner does not have a controlling financial interest.&#160; Accordingly, the Company evaluated the key provisions of each investment&#146;s operating agreement to determine whether it had control, as follows:</font></p>
<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt 40.5pt;"><u><font size="3" face="Times New Roman" style="font-size:12.0pt;">Pacific Premier Retail LLC</font></u></p>
<p style="margin:0in 0in .0001pt 40.5pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">The operating agreement of PPR provides for a board of five directors, of which three directors are appointed by the Company and two directors are appointed by the outside partner. Under the PPR operating agreement, all major decisions, including approval of budgets, capital calls, and financing transactions must be approved unanimously by the board of directors of PPR. The outside partner also participates in the selection, </font><font size="3" style="font-size:12.0pt;">termination, and setting of compensation of management. </font><font size="3" style="font-size:12.0pt;">&#160;In addition, the outside partner has other rights including the ability to approve major contracts, approve normal cash distributions, and approve capital projects. These are all substantive participating rights held by the outside partner. Accordingly, the Company determined that since the outside partner effectively participates in significant financial and operating decisions of PPR that are made in the ordinary course of business, the presumption of control has been overcome and the Company should account for its investment in PPR under the equity method of accounting.</font></p>
<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt 40.5pt;"><u><font size="3" face="Times New Roman" style="font-size:12.0pt;">Arrowhead Towne Center</font></u></p>
<p style="margin:0in 0in .0001pt 40.5pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">The operating agreement of Arrowhead Towne Center is comparable in all material aspects to the PPR operating agreement. As with PPR&#146;s operating agreement, the operating agreement for Arrowhead Towne Center provides for a board of five directors, of which three directors are appointed by the Company and two directors are appointed by the outside partner. The operating agreement states that all major decisions, including approval of budgets, capital calls, and financing transactions must be approved unanimously by the board of directors of Arrowhead Towne Center. The outside partner also participates in the selection, </font><font size="3" style="font-size:12.0pt;">termination, and setting of compensation of management. </font><font size="3" style="font-size:12.0pt;">&#160;In addition, the outside partner has other rights including the ability to approve major contracts, approve normal cash distributions, and approve capital projects. These are all substantive participating rights held by the outside partner. Accordingly, the Company determined that since the outside partner effectively participates in significant financial and operating decisions of Arrowhead Towne Center that are made in the ordinary course of business, the presumption of control has been overcome and the Company should account for its investment in Arrowhead Towne Center under the equity method of accounting.</font></p>
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<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Mr.&nbsp;Robert F. Telewicz,&nbsp;Jr.</font></p>
<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Securities and Exchange Commission</font></p>
<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">June&nbsp;10, 2016</font></p>
<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Page </font><font size="3" style="font-size:12.0pt;">3</font><a name="PB_3_035147_7056"></a></p>
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<p style="margin:0in 0in .0001pt 40.5pt;"><u><font size="3" face="Times New Roman" style="font-size:12.0pt;">MAC Heitman Portfolio</font></u></p>
<p style="margin:0in 0in .0001pt 40.5pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">The operating agreement of the MAC Heitman Portfolio provides that the Company and outside partner each appoint two authorized representatives. Each approval, consent and decision of a member is conveyed by the authorized representatives. All major decisions, including approval of budgets, capital calls, leasing guidelines, and financing transactions must be approved unanimously by both members of the joint venture through their authorized representatives. The outside partner also participates in the selection, </font><font size="3" style="font-size:12.0pt;">termination, and setting of compensation of management.&#160; </font><font size="3" style="font-size:12.0pt;">In addition, the outside partner has other rights including the ability to approve normal cash distributions and approve any capital projects not otherwise included in the approved budget. These are all substantive participating rights held by the outside partner. Accordingly,&#160; the Company determined that since the outside partner effectively participates in significant financial and operating decisions of the MAC Heitman Portfolio that are made in the ordinary course of business, the presumption of control has been overcome and the Company should account for its investment in the MAC Heitman Portfolio under the equity method of accounting.</font></p>
<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">The Company hereby acknowledges that: the Company is responsible for the adequacy and accuracy of the disclosure in the filing; Staff comments or changes to disclosure in response to Staff comments do not foreclose the Commission from taking any action with respect to the filing; and the Company may not assert Staff comments as a defense in any proceeding initiated by the Commission or any person under the federal securities laws of the United States.</font></p>
<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">If you have any questions, please feel free to contact me at (310) 394-6000.</font></p>
<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Sincerely,</font></p>
<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">The Macerich Company</font></p>
<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>
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<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">/s/ THOMAS E. O&#146;HERN</font></p>    </td>
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<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>    </td>   </tr>
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<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Thomas E. O&#146;Hern</font></p>    </td>   </tr>
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<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Senior Executive Vice   President, Chief Financial</font></p>    </td>   </tr>
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<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">Officer and Treasurer</font></p>    </td>   </tr>  </table>
<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>
<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">cc:</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="3" style="font-size:12.0pt;">David Roberts</font></p>
<p style="margin:0in 0in .0001pt;text-indent:.5in;"><i><font size="3" face="Times New Roman" style="font-size:12.0pt;font-style:italic;">Goodwin Procter LLP</font></i></p>
<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>
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