General Growth Shells Out $180 Mil for Tucson Mall

TUCSON, AZ-Cleveland’s Forest City Enterprises Inc. has walked away with $180 million in the sale of the 1.3 million-sf Tucson Mall. The transaction puts the popular mall into the portfolio of Chicago-based General Growth Properties Inc.

The tax-deferred exchange resulted in an after-tax gain of $51 million and generated $73 million in cash proceeds, according to Forest City. The developer’s 67 1/2% tenancy-in-common interest previously was optioned for $121.5 million Tucson Mall was built in 1982 and expanded in 1991.

Charles A. Ratner, Forest City president and CEO, says the sale is a prime example “of our disposition strategy in action and our ability to surface the value of our real estate.” He says the proceeds will be reinvested into higher-yielding projects. Forest City currently is developing the Mall at Robinson in Pittsburgh and Mall at Stonecrest in Atlanta, both boasting pre-leasing of 85%. Opening in September is the 455,000-sf Queens Place in Queens, NY, an urban retail center that’s now more than 95% leased. Forest City also has just unveiled plans for a new project at Station Square in Pittsburgh.