Despite major bumps due to Hurricane Maria and the departure of Saks Fifth Avenue as a major anchor, Taubman Centers, the owners of the Mall of San Juan, reported positive results for third quarter (3Q) 2019.
Tenant sales per square foot in U.S. comparable centers were up 12.3 percent in the quarter, bringing 12-month trailing U.S. sales per square foot to $964, an increase of 13.7 percent over the 12-months ended Sept. 30, 2018. Year-to-date, U.S. sales per square foot were up 15 percent.
“We were pleased to meet our earnings expectations this quarter,” said Robert S. Taubman, chairman, president and CEO.
The ongoing litigation with Hudson’s Bay Company (HBC), regarding the former Saks Fifth Avenue location at The Mall of San Juan has been resolved, Taubman Centers noted. “Accordingly, HBC agreed to pay the company $26 million as a partial reimbursement of their previously received anchor allowance, in exchange for the termination of their obligations under their agreements. Taubman now has full control of the location.”
The allowance reimbursement and value of the former Saks Fifth Avenue building and improvements exceeded the write-off of the book value of the anchor allowance and legal costs incurred in 3Q, resulting in a $10.1 million net gain, which was included in non-operating income, Taubman Centers added.
While Saks has closed its doors, among the new tenants at the Mall of San Juan is Metropol restaurant.