Starwood to Broker $1.2 Billion Worth of Malls

Starwood Capital Group has reportedly hired Eastdil Secured to oversee the sale of domestic malls worth approximately $1.2 billion in total. Starwood has been in the process of selling malls acquired from Westfield Corp., including properties in Chicago, San Francisco and Cleveland. Declining sales revenue from department stores, Internet shopping and bankruptcy filings by companies such as Sports Authority and Aeropostale have negatively impacted firms’ willingness to invest in commercial shopping malls, and according to Blackstone Group LP’s Jon Gray, less luxurious malls face a “very tough environment.” Starwood and Eastdil both declined to comment on the alleged brokering.

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[Photo: Ryan Haggerty / Chicago Tribune]