Why is Simon Property acquiring University Village in Seattle?

University Village in Seattle is the type of property Simon Property Group has long sought to acquire because top-tier retail destinations are in limited supply.

Class A malls comprise only a finite number of malls, and University Village is one of about 250 Class A malls (ranging from A-minus to A-plus-plus) in the United States. The vast majority of the Class A regional malls in the United States are owned or controlled by an oligopoly of a few major institutional owners and REITs including Simon, The Macerich Company, Brookfield Properties (GGP), Unibail-Rodamco-Westfield (URW) and Federal Realty Investment Trust.

University Village is classified by investors, analysts and retailers as a Class A+ lifestyle center and premier regional retail destination. This lifestyle center’s tenant mix allows it to draw shoppers without relying on a traditional department store. Simon CEO Eli Simon is a millennial himself who also understands how young people — millennials and Gen Zers — are embracing the mall concept nowadays, and the value that these assets bring.

Read more: Simon makes rare mall purchase in Seattle as top properties gain ground (CoStar News)