Macerich announced it acquired Annapolis Mall, a Class A retail center in Annapolis, Maryland, for $260 million, along with an adjacent 13.1-acre vacant Sears parcel for $12 million, bringing the total transaction value to approximately $272 million.
The property totals approximately 1.5 million square feet, including 1.2 million square feet owned by Macerich. The company said the acquisition aligns with its strategy of acquiring high-quality retail assets in strong trade areas with redevelopment and merchandising upside.
Macerich expects an initial yield of approximately 9.2% based on estimated first-year net operating income of about $24 million. Including annualized signed-not-open leases representing 353,000 square feet scheduled to commence in 2026 and 2027, the company expects the yield to increase to approximately 10.5%. Macerich projects the stabilized pro forma yield could reach approximately 11% by 2030.
The company plans to invest approximately $40 million in additional leasing capital to support the ongoing transformation and repositioning of the center. Planned and signed tenants include Dick’s House of Sport, Dave & Buster’s, Tesla, Uniqlo, lululemon, OFFLINE by Aerie, Pop Mart, Jack & Jones, and several other retail brands.
The acquisition excludes the Macy’s anchor location and a vacant JCPenney anchor property that is currently being re-tenanted. Macerich said the separately acquired Sears parcel provides optionality for future retail, mixed-use, or alternative development opportunities.
Macerich funded the acquisition through a combination of cash on hand, including approximately $85 million raised through its ATM program, and $150 million borrowed under its revolving line of credit. The company said the financing structure is expected to remain within its previously announced deleveraging targets under its Path Forward Plan.
The company noted that the Annapolis market benefits from proximity to Washington, D.C. and Baltimore, a strong government and military employment base, and affluent demographics with limited competing enclosed retail centers in the region.
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“Annapolis is exactly the kind of acquisition we said we would pursue. It’s located within a strong trade area with limited competition, the property is undergoing a significant elevation and transformation of its merchandising plan and tenant mix, including a new Dick’s House of Sport store opening in the Fall, and there is a clear path to durable NOI growth that is accretive to our 2028 target FFO ranges under the Path Forward Plan. This off market transaction was completed with the prior ownership group who did an excellent job over the past two years starting a significant elevation and transformation of the center’s merchandising plan and tenant mix. We believe applying the resources of Macerich will replicate the success we’ve experienced at Crabtree and across our Go-Forward portfolio.”
Jackson Hsieh, President And Chief Executive Officer, Macerich
“This property complements Tysons Corner and gives us control of the dominant retail position east of Washington, D.C. There is strong initial leasing momentum underway with 353,000 square feet of committed tenants opening in 2026 to 2027. Deploying our leasing, management and marketing platforms will drive total occupancy toward 93%-plus, and we expect to capture significant NOI growth upside as well as lift sales productivity to over $800 per square foot.”
Jackson Hsieh, President And Chief Executive Officer, Macerich
