Christiana is Delaware’s billion dollar mall

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Drum roll please – Delaware has a billion dollar trophy mall.

The Commercial Observer reported   the breathtakingly high value on Tuesday in a story about the refinancing of 1.3 million square foot  Christiana Mall with a $550 million loan.

The real estate site reported the mall has an appraised value of slightly more than $1 billion. 

The mall has long been a top performer among regional shopping centers, thanks in part to Delaware’s lack of a sales tax and the lack of a major expansion that might have affected vacancy rates. 

Unlike many regional malls, Christiana did not move to the two million square foot mark with a two-story interior. That helped keep vacancy rates down

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Cash flow is also aided by Delaware’s low property taxes. Much of the state’s school financing is  borne by the state through corporate fees and income taxes. 

Clues about the mall’s value have surfaced over the years when the Rubin family interests sold off a half interest for about $200 million a decade or so ago. Rubin, through a real estate investment trust,  reinvested and upgraded other regional malls.

According to the Commercial Observer, the mall changed hands earlier this year, with the new owner taking on debt from the deal. 

Christiana Mall was built in 1978 by the Rubin family. It underwent an expansion and upgrade that started about a decade ago after losing  Strawbridge’s and Lord and Taylor as anchors.

The two stores were razed with the popular Target and the upscale Nordstrom’s stores taking their place.

The mall has since had a number of owners with real estate giant Brookfield being the latest landlord. 

Occupancy has stayed at 90 percent or above, with owners commanding premium rents.

Commercial Observer did report that cash flow has declined slightly,  perhaps a sign that the turmoil in retailing is even affecting trophy malls.

Christiana Mall has escaped the wave of bankruptcies and department store closings that are leading to “ghost malls” in many parts of the country.

The mall does see turnover with smaller store spaces, although its high sales per square foot figures result in other retailers coming on board. 

Christiana  has boosted its entertainment offerings with a cinema complex, a Cabela’s outdoors store and restaurants that can be accessed from the parking lot. 

The mall is adjacent to Interstate 95 and at various times of the year contributes to congestion on the Northeast Corridor route that funnels traffic  to Philadelphia, New Jersey and New York, via interstates, 95, 495 and 295.

An interchange with Route 1  was completed a few years ago, but congestion at rush hour periods around the mall remains. The mall is bordered by both Route 1, the state’s main north-south Route and I-95. 

The mall has a new neighbor and competitor,  Christiana Fashion Center, a lifestyle center  that is offering options for retailers seeking space in the area.

The center has attracted a blend of restaurants, national retailers, off-price stores and entertainment businesses. 

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