Developed by the university in multiple phases starting in 1956, the mall is anchored by five major department stores -- Neiman Marcus, Nordstrom, Bloomingdale's, Macy's, and Macy's Men's Store. The mall had sales per sf of $600 in 2002, making it one of the most successful regional malls in the United States.

Revenues from the shopping center have supported the University's teaching and research mission. As required by its founding grant, Stanford will retain ownership of the dirt, which will be controlled by Simon under a long-term ground lease. Eastdil Realty assisted Stanford in arranging the sale.

Simon CEO David Simon says the company will be able finance the acquisition at "attractive rates" and that "the transaction is expected to be immediately accretive to earnings." The news has already assisted the company's share price. In noontime trading, shares of Simon are selling for $39.75 a piece, up $0.30 on the day and within reach of its 52-week high of $40.04.