Simon to Buy High-Profile Open-Air Center

Simon has entered an agreement to acquire University Village, an open-air retail and dining center in Seattle. Terms of the deal – which is expected to close later this year – were not disclosed. According local news reports, the seller is longtime owner, Stuart Sloan, former owner and chairman of the QFC grocery chain.

Since opening in the 1950s north of downtown near the University of Washington, University Village has grown to more than 100 businesses and services. With nearly 600,000 square feet of space, its retail tenant roster includes Anthropologie, Apple, Aritzia, Crate & Barrel, Lululemon, RH Gallery, Room & Board, Sézane and Vuori, while its restaurants/cafes include Chipotle, Delfino’s Chicago Style Pizza, Din Tai Fung, Shake Shack and Starbucks (two locales).

“This acquisition underscores our focus on owning distinctive, high-quality assets in strong markets,” said Eli Simon, CEO, COO and President of Simon Property Group. “We look forward to building on the center’s success for shoppers, retailers, and the greater Seattle community.”

In its coverage of the deal, Dealroom.co noted the Simon buy is further evidence that investors’ appetite for retail real estate is returning.

“In October alone, Federal Realty bought Birmingham Ala.’s 870,000-square-foot Summit for $508 million, while pension investor PSP and Nuveen launched a $790 million open-air-center joint venture,” the news source reported. “Simon’s move is less a sector-defining megadeal than a bet on a prized destination as buyers compete for strong retail assets.”

Overall, Simon owns and operates 250-plus shopping complexes around the world, many bearing the Premium Outlets and Mills nameplates.