As of today, Bloomfield Hills, Mich.-based Taubman Centers Inc. now owns 100% of the Dolphin Mall in Miami, Fla. It acquired Miami-based partner Swerdlow Real Estate Group's 50% interest in the 1.3 million-sq.-ft. valueshopping center for $97 million. The acquisition also settles all previous lawsuits between Taubman and Swerdlow.
The buyout includes $94.5 million of debt that encumbers the center and peripheralwith a book value of $2.3 million. No cash was exchanged. Taubman expects the transaction to be neutral to its funds from operations (FFO).
"We are pleased to resolve the ownership issues of this asset," said Robert S. Taubman, Taubman Centers chairman, president and CEO. "When the Swerdlow Group exercised the buy/sell provision of the partnership agreement, we elected to buy out their position based on our strong belief in the long-term potential of the Dolphin Mall, the attractive returns anticipated from the incrementalto be made, our ability to move forward with a single vision for this asset, and the importance of our relationships with the participating banks and retailers."
Dolphin Mall is located just four miles west of MiamiAirport at the intersection of the Dolphin Expressway (836) and the Florida Turnpike. It features more than 200 outlet, dining and entertainment venues in an exciting enclosed environment. Major tenants include Burlington Coat Factory, Cobb Theatres, Dave & Busters, Group USA, Off 5th Saks, Old Navy, Oshman's Supersports and the recently announced Neiman Marcus Last Call, which will open at the center in June 2003.