Hines, the international real estate firm, announced today plans to sell the retail and hotel portions of Dallas’ largest mixed-use complex, Galleria.
Constructed in 1982 and expanded in 1985, 1990, 1996 and 2002, Galleria is located on a 42-acre tract in the heart of North Dallas at the intersection of LBJ and the Dallas North Tollway, Texas’ busiest intersection. Also included in the sale will be Galleria North, an open-air 112,000-square-foot lifestyle center, opened in 1999, located on a 7.5-acre tract directly north of the Galleria at Alpha and Noel Roads.
Hines has retained the brokerage firm of Holliday Fenoglio Fowler L.P. to handle the sale. Holliday’s Executive Managing Director, Mark Gibson, said, 'These assets may be the most attractive to come to market nationally in 2002. Galleria’s retail has been the dominant shopping center in Dallas for 20 years and the hotel is the perennial rate and occupancy leader in North Dallas.'
The Galleria complex contains a total of 3.8 million square feet. The portion that will be sold includes the mall (which contains 1.8 million square feet of space for anchors, in-line stores and common area); Galleria North (which contains 112,000 square feet of retail space); and the 473,500-square-foot, 431-room Westin Hotel. Hines is the majority partner in the Westin Hotel with Starwood as the minority partner and operator. The three office towers in the complex are not included in the sale, as they were sold by Hines in 1999.
The Galleria houses the Dallas flagship stores for Nordstrom’s, Macy’s and Saks Fifth Avenue. Its newest anchor is GAP Inc., which recently opened its one-of-a-kind three-level Gap/Banana Republic/Old Navy store on the south end of the mall. In-line store space is currently 95% leased to some 200 signature retail tenants. Galleria North, which is 100% occupied, includes as tenants The Container Store; Restoration Hardware; Starbucks; Z Gallerie; Crate & Barrel; Cookworks; and Mondo’s.
'Galleria Dallas is everything a mixed-use center should be -- its components have always outperformed freestanding malls and hotels in the market. Galleria is a commercial and community landmark. Our 20-year stewardship of the asset has been very satisfying,' said Hines President Jeff Hines.
(source: Hines)
