[ASU Diablo]

Hopefully this sale speeds up the development of the new mixed-use tower proposal.

https://www.bizjournals.com/phoenix/news...velopment-biltmore-fashion-park-new.html

As it reported its second quarter earnings, executives at Macerich Co. made a significant announcement: that it has sold its 50% stake of Biltmore Fashion Park to a regular project partner, Red Development, which now takes full ownership of the shopping center.

"Red Development is honored to acquire full ownership of Biltmore Fashion Park, now making one of the state’s most important and historical properties into a locally owned and operated landmark," said Mike Ebert, managing partner of Red Development in a statement to the Phoenix Business Journal. "We’re grateful to Macerich for this incredible opportunity and for the years of collaboration and partnership. We look forward to unveiling our plans for the next chapter of this iconic destination soon."

The deal, which Macerich (NYSE: MAC) President and CEO Jack Hsieh said closed in the hour before the earnings call on July 31, reduced $110 million in debt at the company. The sale is in line with a company goal to reduce debt by $2 billion; Santa Monica, California-based Macerich expects to end the year with between $1 billion and $1.4 billion of debt reduction.

"That project had entitlements to increase office density on the project. As you know, we added a new Life Time Fitness into that location. Over time that was going to have a more balanced retail mixed use component to that overall project," Hsieh said in response to a question from an investor. "In our judgment, we felt like, that was a good way to raise liquidity. It's good for our partner."

Phoenix-based Red Development recently moved its office into Biltmore Fashion Park, where it already had a 50% stake prior to the deal. Red Development has been working Macerich to develop a tower within Biltmore Fashion Park. The final details of the proposed tower are still to be determined, though the partnership has identified a 140-foot office tower or a 165-foot single or mixed-use tower that would be hotel, residential, office and/or retail. The project team previously told the Business Journal the building's ultimate mix of uses will be dictated by market demand.

Biltmore Fashion Park is home to tenants such as Macy's, Saks Fifth Avenue, Anthropologie and Life Time. The location of proposed office tower would located near Life Time toward the southeast corner of the 32-acre parcel.

Macerich initially submitted an application to the city of Phoenix Planning Hearing Officer to develop an office tower at Biltmore Fashion Park before withdrawing the application and modifying the proposal to allow for more flexibility in what it can develop on-site. Phoenix City Council voted in favor of the project in early July, according to the Arizona Republic.