General Growth Properties Inc. (GGP) sold half its interest in the Grand Canal Shoppes, including the Shoppes at the Palazzo, in Las Vegas for net proceeds of $410 million as part of a new joint venture with TIAA-CREF.
The 774,000-square-foot (72,000-square-meter) mall in the Venetian and the Palazzo hotel-and-casino complex on the Las Vegas Strip is 99 percent leased, the partners said today in a statement. General Growth, based in Chicago, said it will continue to handle management and leasing of the property, which generates more than $1,000 of sales per square foot.
The investment boosts New York-based TIAA-CREF’s real estate holdings as demand for luxury-mall space climbs. At regional centers, which typically include department stores, vacancies fell to 8.3 percent in the first quarter from 9 percent a year earlier, and rents rose to $39.46 a square foot from $39, research firm Reis Inc. (REIS) said on April 4.
TIAA-CREF, the provider of retirement accounts for teachers and non-profit organizations, had $520 billion of assets under management as of the end of March, according to the statement. General Growth is the biggest U.S. mall owner after Indianapolis-based Simon Property Group Inc. (SPG)
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