TIAA Takes 50% Stake in Fashion Show Mall

Fashion Show Mall, Las Vegas.

LAS VEGAS—According to General Growth Properties recent earnings call, the company revealed a new joint venture with TIAA Global Asset Management at Fashion Show in Las Vegas. “Fashion Show is a one- of-a-kind asset,” said GGP’s Sandeep Mathrani, CEO. “Over the past several years the GGP team has successfully re- tenanted several anchor boxes, bringing in Macy’s Men’s, Urban Outfitters and Dick’s Sporting Goods. We brought to life the boulevard entrance bringing a number of new dining and leisure options.” Mathrani continues to point out that TIAA Global Asset Management will now own approximately 50% of Fashion Show. The transaction values the asset at approximately $2.5 billion. Mike Fisk , senior director of TIAA Global Asset Management, who spearheaded the transaction, said that the TIAA Real Estate Account, which the asset was acquired by, provides individual investors direct access to commercial real estate and has nearly $24 billion in assets under management. “We have a long-standing relationship with GGP in terms of both debt and equity investments,” said Fisk. “Our other equity investments are in the Ala Moana mall in Hawaii (12.5% purchased in 2015) in and Grand Canal Shoppes in Las Vegas (49.9% purchased in 2013).” Fashion Show is the only major retail property on the Strip not affiliated with a casino or hotel yet is one of the most productive shopping malls in the US, explained Fisk. “It is the dominant retail asset in the Las Vegas metro area, catering to affluent tourists and local shoppers.” Originally developed in 1981, Fashion Show has been well maintained and renovated several times over the years and now includes 1.87 million square feet of GLA on 48 acres. “With multiple new development projects immediately planned for the area north of the property, thousands of additional hotel rooms and new casinos will further increase traffic flow,” explained Fisk. He continues to point out that TIAA was attracted to the asset based on its partnership with GGP and the “continued alignment of interests generated through these joint ventures.” He adds that “Fashion Show is a top location for both new and established retailers in Las Vegas and over the years has demonstrated an ability to withstand economic cycles and new supply in the market.” From a long-term perspective, Fisk explained, “our research points toward continued positive indications for regional mall performance given a modest new supply pipeline, re-leasing opportunities and expected high productivity as consumers increasingly seek entertainment experiences outside the home.”