Real estate play is on for stores federated is required to divest.

The latest news out of Federated Department Stores Inc. is that two of the retailer's San Fernando Valley stores, once slated for divestiture, may be retained by the company.

But those who might think that's good news for the shopping centers that house the stores in question, have likely not been paying close attention to the game of real estate monopoly that has ensued since Federated closed its deal to acquire May Department Stores Co back in January.

Several of the affected shopping centers have already moved aggressively to buy up as many of the stores slated for disposal as they can, realizing that owning the property provides an opportunity to redevelop the center that is more valuable than a tenant in hand.

And some of those who have not been successful as yet, are still hoping to strike a deal in the future.

"We would love to be able to control the building and determine what's going to happen in the shopping center," said Rick Forster, senior general manager at Northridge Fashion Center, a General Growth property. "But there are lots of things that can happen that would be good for us that would be done by Federated as well."

Federated initially earmarked the Robinsons-May at Northridge Fashion Center, which also houses a Macy's, for divestiture, but in recent months, has said that it will retain both the stores on that property. The same is true at Westfield Promenade in Woodland Hills, which has two Macy's stores, one devoted to men's and home and the other for women's apparel and other merchandise.

Federated officials confirmed that they are planning to retain the two stores at the Promenade, but the company has since been less definitive about the Northridge store.

"The company continues to review its portfolio of stores and may make additional adjustments," said Janet DeVor, a spokesperson for the company. "Northridge is currently being evaluated and no decision has been made. As soon as we have an announcement on this location, we will make it."

To satisfy federal and state regulators, Federated, which owns Macy's, has to divest about 80 or more stores across the country as a result of the company's acquisition of May Department Stores Co., the former owners of the Robinsons-May chain. Which stores it sells depends not only on the stores' performance and the market in which it is located, but also on the type of deal it can strike. And each deal it does close has the potential to affect its plans with regard to the remaining stores.

The bottom line is that Federated would like to retain the best real estate it can while complying with regulations to make the necessary divestitures.

Many of the sales Federated has closed so far have involved multiple locations. Since mall operators often operate on a national level, they can negotiate for stores in a number of markets, changing the landscape for Federated as they go.

So far, most of the sales have been to mall operators rather than other retail chains. Simon Property Group Inc., an Indianapolis-based REIT that owns some 285 properties across the country, has acquired nine Robinsons-May or Macy's stores.

Westfield Group, a global company whose holdings include the Topanga mall in Canoga Park and Fashion Square in Sherman Oaks, has so far acquired 13 of the stores.

The Macerich Co., a Santa Monica-based REIT that owns interests in some 76 malls including The Oaks in Thousand Oaks and Santa Monica Place, has acquired 11 stores.

And last month, General Growth Properties, a REIT that owns or manages more than 200 malls including Glendale Galleria and the Northridge mall, agreed to acquire nine of the stores.

By contrast, only two retailers have thus far struck deals for any of the stores: Boscov's, a regional department store with 40 locations in the East, has acquired 10 of the stores and Gottschalks, a regional chain head-quartered in Fresno, picked up one store.

For most of the history of the shopping center, which only evolved in the last half of the last century, department stores were a necessary evil, required to draw traffic that would, in turn, induce specialty operators to rent space in the mall. Armed with an upper hand, department stores were able to strike deals that often allowed them to occupy the mall but retain ownership rights to their properties and continue to control their destinies.

But as retailing has changed and other types of retailers such as national specialty chains, discounters and big box stores have overtaken department stores as the preferred channel, traditional department store retailers have lost some of their appeal and with it, their clout.

Add to that the newest component of shopping malls, so-called lifestyle centers that feature different forms of entertainment ranging from restaurants to movies and day spas, and mall operators no longer feel it necessary to configure their malls in the traditional way, with two or more department stores to anchor the center.

Now, as mall operators see the chance to reclaim the real estate, they are remaking their malls replacing their traditional anchors with other types of stores, dining options or other features that are just as effective, if not more effective, at drawing customers.

In making its announcement about the acquisition of nine Federated stores, General Growth officials did not mince words about their intention.

"These store locations are prime real estate for us to transform them into retail entertainment destinations," said John Bucksbaum, CEO of General Growth. "We can replace them with another exciting department store or we can transform the space into a collection of retail shops and restaurants. The opportunities are endless."

At Northridge, talks fight now are centering around Federated retaining the Robinsons-May building, but, perhaps, not occupying the entire space.

"That is a building that the Federated group owns," Forster said. "So there is nothing we can do until they make as decision as to what they would want to do. We would love to own that property, but that isn't happening currently."