By BOB OLIVER
DEARBORN — Fairlane Town Center has been sold as part of a seven-mall package for about $1.4 billion.
The agreement between former owner Taubman Centers Inc. of Bloomfield Hills and Starwood Capital Group LLC of Greenwich, Conn., was announced last Wednesday.
As part of the deal, SCG will pay $785 million in cash and assume $620 million in debt to acquire Fairlane, The Mall at Partridge Creek in Clinton Township and five other malls in Virginia, North Carolina, Florida and Texas.
In a press release announcing the purchase, SCG Chairman and CEO Barry Sternlicht said the acquisition was “highly strategic” for Starwood and its retail operating platform.
“These assets will expand SRP’s retail portfolio to 28 properties totaling 26.8 million square feet across 15 states,” Sternlicht said. “The Taubman portfolio broadens our relationships with higher end department stores and in line tenants and gives us an excellent opportunity to continue to produce attractive returns for our investors.”
Taubman Centers President and CEO Robert S. Taubman said the move increased his company’s industry leading productivity while modestly reducing the size of its base.
“The seven centers we are selling are strong properties that fit well within the Starwood portfolio and will continue to thrive under their management,” Taubman said.
Taubman Centers owns, leases or manages 27 retail properties in 15 states, including Twelve Oaks Mall in Novi and Great Lakes Crossing in Auburn Hills.
(Bob Oliver can be reached at [email protected].)