LAS VEGAS—General Growth Properties, Inc., and TIAA-CREF have formed a partnership to own and operate The Grand Canal Shoppes, including The Shoppes at the Palazzo, located in Las Vegas.
The Grand Canal Shoppes is located at the heart of the Las Vegas Strip within The Venetian and The Palazzo hotel, casino and resort complex. The property is 99% leased and comprises approximately 774,000 square feet of gross leasable area occupied by upscale retailers and restaurants.
Effective with the partnership formation, GGP and TIAA-CREF will each own approximately 50% of The Grand Canal Shoppes. The partnership is limited to the retail portion of the property. Prior to the formation of the partnership, GGP owned 100% of the property. The transaction generated approximately $410 million of net proceeds, and GGP will continue to provide management and leasing services.
TIAA-CREF continues to seek opportunities in regional retail properties with strong income streams as part of a well-diversified real estate portfolio. The company has $33 billion in private real estate investments in the office, retail, industrial and multifamily sectors across the United States, Canada and Western Europe.
General Growth Properties is a fully integrated, self-managed and self-administered real estate investment trust focused exclusively on owning, managing, leasing, and redeveloping high quality retail properties throughout the United States.