The purchase price will be equal to the property's net operating income in month 30 of operation divided by a capitalization rate. The capitalization rate is 6% on the first $38 million of net operating income and 8% on the net operating income above $38 million. Given the lease agreements in place, Las Vegas Sands said in January that it expected an initial payment of more than $500 million and total payments of at least $750 million. The cost to develop the Palazzo retail was $580 million, according to SEC filings.

An industry source familiar with the transaction tells GlobeSt.com that the decreased initial payment is due to the fact fewer stores than expected were up and running at the time of the initial close, so their rents were not taken into consideration. As a compromise, the Las Vegas Sands and GGP agreed to revisit the total more often than was agreed to previously. Previously, GGP was to make additional payments based on the property's NOI in months 12, 24 and 30. Now, the NOI will be reviewed and additional payments (if necessary) will be made in months 4, 8, 12, 18, 24 and 30.

GGP agreed to acquire the Palazzo retail in 2004, at the time it acquired the neighboring Venetian's 407,000-sf Grand Canal Shoppes, also from Las Vegas Sands. It ultimately paid $776 million for the Grand Canal Shoppes.