General Growth Looking Beyond Retail

CHICAGO-The second-largest US retail REIT is not afraid to branch out into other sectors. Chief executive officer John Bucksbaum says General Growth Properties Inc. is looking at its 200 properties, which total 175 million sf, for potential residential, office and hotel development or redevelopment opportunities.

“All of these alternatives are good for the long-term viability of our malls,” Bucksbaum said during his company’s earnings conference call Tuesday. “Changing demographics and changing lifestyles are increasingly driving the desire of people to live, play, work and learn in more self-contained developments.” At the same time, Bucksbaum added attitudes of local municipalities are helping drive General Growth Properties to look within the boundaries of its own holdings rather than stake out new development sites. “It is through mixed-use and higher densification of our land where we’ll see growth in the future,” Bucksbaum said.

Residential development is a component in the $170-million Victoria Ward and $104-million Ala Moana redevelopments in Honolulu, as well as the 328,197-sf expansion of a mall in Natick, MA, a $230-million project. Condominiums also are a part of the plans for a 1.1-million-sf shopping center in Allen, TX.