Galleria Edina Sold to Local Investor Group

Galleria Edina Sold to Local Investor Group

New St. Paul-based investor group 70th Street Properties LLC acquired the Galleria from Houston-based Hines.

Hines Global REIT Inc. has sold Galleria Edina, the Twin Cities’ toniest shopping center, to local investor group 70th Street Properties LLC, real estate broker JLL Capital Markets said Monday. Purchase price: $150 million, according to a Minnesota Department of Revenue filing.

The new ownership group is so far keeping a low profile: according to records, 70th Street Properties was formed as a limited liability company in September of 2021 with a St. Paul address. Sources say the group has retained Hines to continue managing the Edina property.

Houston-based Hines paid $127 million for the Galleria in 2012, acquiring the center from its local developer, Gabbert & Beck. Built in 1974, Galleria features the Twin Cities’ most exclusive mix of retailers including Louis Vuitton, Tory Burch, Tiffany & Co., David Yurman, Shinola, and Bluemercury. The 398,585-square-foot center is 99 percent leased, including its newest arrivals, new-to-market home store Parachute and contemporary apparel brand Madewell. Hines completed an expansion of the mall in 2017.

Hines put the center up for sale in early 2020, but took the listing down a few months later as the Covid-19 pandemic caused retail sales to plummet, prompting market uncertainty. JLL quietly resumed talking to potential buyers some months later.

“Galleria Edina is one of the premier retail assets in the Midwest and has an expansive trade area as a result of being the sole location for many of the tenants in the Midwest region,” JLL senior managing director and co-head of U.S. retail capital markets Danny Finkle said in a statement. “This is the essence of a generational asset within a remarkable market with unlimited growth opportunities ahead.”

This is a developing story, check back for more details.