Macerich, a leading owner, operator and developer of major retail properties, has acquired Annapolis Mall, a Class A retail center totaling approximately 1.5 million square feet in Annapolis, Maryland, for $260 million, plus the adjacent 13.1-acre vacant Sears parcel for $12 million, bringing the total transaction value to $272 million. The off-market transaction was funded with cash on hand, including approximately $85 million of proceeds through the company’s ATM program, and $150 million of borrowings on its revolving line of credit. The acquisition is accretive to Macerich’s Path Forward Plan and its 2028 target FFO ranges.
Macerich expects a Year 1 net operating income yield of approximately 9.2%, rising to approximately 10.5% when including annualized signed-not-open leases representing 353,000 square feet expected to commence in 2026 and 2027. The stabilized pro forma yield is expected to reach approximately 11.0% by 2030. Following the acquisition, Macerich plans to invest approximately $40 million of leasing capital at the property as part of a strategic remerchandising plan, building on significant capital already invested by the prior ownership group. The SNO pipeline includes Dick’s House of Sport, which will open a 116,000-square-foot store in August 2026, as well as Dave & Busters, Tesla, Uniqlo, lululemon, OFFLINE by Aerie, Aeropostale, Abercrombie & Fitch and Pop Mart, among others.
The Annapolis market benefits from its proximity to Washington, D.C. and Baltimore, a strong military and government employment base anchored by the United States Naval Academy, Fort Meade and the National Security Agency, and a highly educated and affluent consumer demographic. Anne Arundel County has a median household income above the national average and a population that has grown steadily over the past decade. The trade area is well-insulated with limited new retail supply and no competing enclosed regional mall of comparable scale.
The acquisition excludes the Macy’s anchor, which is not owned, and a vacant JCPenney anchor store being actively retenanted. The adjacent Sears parcel, acquired separately for $12 million, sits on the most heavily trafficked corner of the property and provides optionality for future retail, mixed-use or alternative development. Macerich currently owns approximately 41 million square feet of real estate across 39 retail centers, with its portfolio concentrated in California, the Pacific Northwest, Phoenix and the Metro New York to Washington, D.C. corridor.
KEY QUOTES:
“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.”
Jackson Hsieh, President and CEO, 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 CEO, Macerich
