Gazit Globe buys Boston mall

Chaim Katzman Photo: Eyal Izhar

The company will pay $81.8 million for Marketplace Center.

Gazit-Globe Ltd. (NYSE: GZT; TASE: GZT; TSX: GZT) has reported its acquisition of the Marketplace Center in Boston for $81.8 million. The investment is another in a series of investments by Gazit Globe in recent years in business centers in New York, Boston, and Miami on the US East Coast.

Gazit Globe operates in the US through its fully owned Gazit Horizons subsidiary, founded in 2017 for the purpose of buying mixed-usage properties with a retail element in major cities in growing urban areas. Marketplace Center is Gazit Horizons' seventh acquisition in Boston. The company now owns 11 US properties with an aggregate value of $444 million (NIS 1.6 billion).

Gazit Horizons CEO Jeff Mooallem said, "Marketplace Center sits at a highly valued intersection of public space and mass transit, and benefits from tremendous pedestrian traffic and visibility. We… look forward to continuing to grow our portfolio in Boston."

Marketplace Center is a shopping center with 5,760 square meters on a 1.3-acre site in the Boston financial center. The property has direct access to the Rose Kennedy Greenway park connecting the financial center with the waterline and Faneuil Hall Marketplace.

Gazit Globe said that the property is 100% occupied by anchor tenants, such as Banana Republic, GAP, LOFT, and American Eagle. The company added that Marketplace Center's location was an important tourist attraction bustling with pedestrians and located near a metro station.

A number of projects near Marketplace Center are in development stages, including a 225-room hotel slated for completion in the coming year, 250 luxury housing units scheduled for completion in 2021, and a number of office towers. The population living within a one-mile (1.6-kilometer) and three-mile (4.8-kilometer) radius of the property is 53,000 and 389,000, respectively, with an average annual income per household of $124,000 and $160,000, respectively.

Published by Globes, Israel business news - en.globes.co.il - on April 29, 2019

© Copyright of Globes Publisher Itonut (1983) Ltd. 2019

Chaim Katzman Photo: Eyal Izhar
Chaim Katzman Photo: Eyal Izhar
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