After 19 years, Taubman Centers has sold its 39-acre stake in the Cerro Wire property in Syosset to competitor Simon Property Group.
“Despite our best efforts and continuing enthusiasm for the opportunity, it became apparent that we were not going to be able to move forward anytime soon in Syosset with development of The Mall at Oyster Bay,” said Robert S. Taubman, chairman, president, and chief executive officer of Taubman Centers. “Given the excellent progress we are making with a number of other properties in our development pipeline, we are pleased to be able to redirect our resources at this time.”
The Michigan developer had planned to build a luxury mall on the property, against the wishes of the majority of residents and the Town of Oyster Bay.
The luxury mall would also have been a threat Simon, which owns both the Walt Whitman and Roosevelt Field malls nearby, as well as Americana Manhasset owners Castagna Realty Co., one of Simon’s partners.
In addition to the Cerro property, Taubman also sold its interest in Arizona Mills (Tempe, Ariz.) to Simon.
The consideration, excluding transaction costs, consisted of $60 million of cash and 555,150 partnership units in Simon Property Group Limited Partnership. As part of the sale, Taubman will be relieved of its $84 million share of the current $167 million mortgage loan on Arizona Mills, bringing the transaction’s total value to $230 million.
“In addition, the sale of our 50-percent interest in Arizona Mills allows us to recycle our capital and invest in our business,” said Taubman.