Maplewood Mall

Value-Add Regional Mall Opportunity | Maplewood Mall | Minneapolis MSA

Deal Type: Acquisition

Risk Profiles: Value-Add

Property Types: Retail

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Investment Opportunity

Maplewood Mall

St. Paul, MN

THE OFFERING

Newmark has been exclusively retained to market to qualified investors the opportunity to acquire Maplewood Mall (the “Property” or “Mall”), a super-regional mall located in the capital city of St. Paul, Minnesota. The Mall consists of approximately 919,254 square feet of gross leasable area (338,499 SF, Owned), situated on 34.7 acres (Owned). The Property’s anchor tenants include JCPenney (88,000 SF, Unowned), Macy’s (225,000 SF, Unowned), Kohl’s (84,989 SF, Unowned) and a future HmongTown Marketplace (169,695 SF, Unowned). These anchor tenants are complemented by a strong line-up of major and in-line national retailers highlighted by Barnes & Noble, Bath & Body Works, Champs Sports, H&M, Hot Topic, Journey’s, Victoria’s Secret and Zumiez.

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IMPORTANT HIGHLIGHTS

EXCELLENT LOCATION WITHIN A THRIVING COMMERCIAL CENTER: The Mall is located in Maplewood in the capital city of St. Paul, Minnesota’s second largest city with a population of approximately 500,000 residents. St. Paul is a thriving commercial center, with a healthy mix of large, Fortune 500 corporations, healthcare providers, countless small businesses and anchored by the public sector. Three Fortune 500 companies are headquartered in St. Paul, 3M Corporation, St. Jude Medical, and Ecolab. Additionally, St. John’s Hospital, and several adjacent healthcare clinics, are located just one mile from Maplewood Mall.

IN-PLACE CASH FLOW WITH VALUE-ADD OPPORTUNITY: The Mall offers new ownership in-place gross and net operating incomes of approximately $7.6M and $3.8M respectively, from a unique mix of stable and predictable cash flow. The current income will provide ample free cash flow to fund both tenant and capital improvements as new tenants are introduced to the Mall, thus ensuring the Mall’s success in adapting to a changing marketplace.

STRATEGIC LOCATION WITHIN A HIGHER EDUCATION MECCA: St. Paul’s population is well-educated as the area consistently ranks amount the top U.S. cities in terms of number of institutions of higher education per capital. Within a 15-mile radius of Maplewood Mall there are several colleges and universities, including Bethel University, Century College, Concordia University, Hamline University, Macalester College, University of St. Thomas and most notably the University of Minnesota. These schools have a combined student population north of 58,000.

AFFLUENT TRADE AREA DEMOGRAPHICS: The area within a 25-mile radius of Maplewood Mall reports median household income of $92,330 well above the median household incomes of both Minnesota and The United States with values of $86,801 and $72,414, respectively. The Property also benefits from a densely populated trade area, with a population north of 2.8M residents within a 25-mile radius, and projected growth of 0.4% annually through 2029. The above-average demographics will expand ownership’s possibilities with respect to introducing new tenants to the Mall as well as enacting a potential broad redevelopment.

POSITIVE LEASING MOMENTUM: Over the past two years Maplewood Mall has signed 21 new leases totaling over 62,300 square feet.

NUMEROUS REPOSITIONING OPTIONS AVAILABLE: Opportunity exists to backfill in-line current vacancies and replace lower paying retailers with new national concepts currently looking to expand and enter the St. Paul market. Moreover, there is an opportunity to introduce non-retail-oriented tenants with a focus on education, entertainment, medical and government uses.

ANCHOR BOX REDEVELOPMENT UNDERWAY: Seritage sold the former Sears box to a local investor for $5.3M in 2023. The buyer plans to open another of the popular Hmongtown Marketplace location at the Property. Hmongtown Marketplace will feature a 50,000 square foot grocery store on the ground level and smaller vendors on the second floor, all catering to the large Hmong population in the St. Paul area. Scheduled to open in early 2025, the addition of this marketplace will bring in additional foot traffic to the Property and will diversify the Mall’s tenant base. The Marketplace is expected to open in early 2025.