New real estate deals are coming up

It’s true that the US real estate market has undergone highly negative impacts on account of the ongoing downturn but it doesn’t indicate that the market is closed. On the contrary, deals though in small amounts are going on and in this regard General Growth Properties Inc. can be considered as a good example.

It has come to the knowledge that this well-known mall owner has received the offer of almost $400 million for a trio of high-end mixed-use properties. In this list there is the presence of Faneuil Hall Market Place in Boston. The real estate investment trust (REIT) has received more than 10 bids for its “Festival Portfolio”, which is being marketed since December by New York City-based DTZ.

Who are the bidders then? Well, it is unknown yet but among them there is the inclusion of private groups along with overseas bidders and real-estate developers. General Growth Properties Inc. is the owner of Providence Place and the Silver City Galleria in Taunton and manager of the Swansea Mall, the publicly traded real estate investment trust (REIT).

Speaking on this Dan Fasulo, managing director of New York City property-research firm Real Capital Analytics Inc., told Bloomberg News, “You’re not going to get a novice coming in here and trying to get these to work.” “You need someone who has some experience running a lifestyle-type asset. There will be a finite number of people looking at these.”

It is to be noted that apart from Fanueil Hall, at Boston’s Quincy Market, the Festival Portfolio properties are Harbor Place & The Gallery, on Baltimore’s Inner Gallery; and the South Street Seaport, near the Brooklyn Bridge in New York City. Each of the parcels was part of General Growth’s 2004 acquisition of the Rouse Co., which also brought the company a number of other properties, including Providence Place.

It is expected that General Growth Inc. will not sit idle and be able to select a buyer or buyers in the next several weeks.