The Macerich Company has acquired Annapolis Mall, a Class A retail center totaling approximately 1.5 million square feet (1.2 million square feet owned) in Annapolis, Md. for $260 million, plus the adjacent 13.1-acre vacant Sears parcel for $12 million.
The acquisition excludes the Macy’s anchor, which is not owned, and a vacant JCPenney anchor store that is being actively retenanted. The adjacent 13.1-acre vacant 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.
“Annapolis is exactly the kind of acquisition we said we would pursue,” said Jackson Hsieh, president and chief executive officer, Macerich. “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.”
Macerich expects a yield on the Annapolis Mall acquisition of approximately 9.2% based on estimated Year 1 net operating income (NOI) of approximately $24 million and a yield of approximately 10.5% based on an estimated Year 1 NOI of approximately $29 million, which includes annualized signed-not-open leases (SNO). The SNO leases represent 353,000 square feet expected to commence in 2026 and 2027. The stabilized pro forma yield is expected to increase to approximately 11.0% by 2030. Following the acquisition, the company plans to implement a strategic investment plan at the property that includes investing approximately $40 million of leasing capital in addition to significant capital invested over the past two years by the prior owner to begin the transformation and repositioning of the center.
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 (expansion), Offline by Aerie, Aeropostale, Abercombie & Fitch, Pop Mart, Jack & Jones and others. Several new inline tenants including Urban Planet, DTLR, Talbots, upgraded Hollister, and others have already opened at the center in the first quarter of 2026.
Macerich has funded the acquisition with cash on hand, which includes approximately $85 million of proceeds through the Company’s ATM program, and $150 million of borrowings on its revolving line of credit. The financing of the acquisition is expected to keep the Company within its previously stated de-leveraging targets under the Path Forward Plan.
Hsieh added, “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.”
