Hines Confirms It Bought the Galleria for $127M
Hines Global REIT, Inc., has purchased the Galleria shopping mall in Edina for $127 million, Hines spokeswoman Kim Jagger confirmed Thursday.
Several media reports that surfaced in early August indicated that Houston-based Hines had invested in the upscale shopping center, but they did not disclose the amount of the investment or how much of an ownership stake Hines had taken.
In its quarterly report, which was recently filed with the U.S. Securities and Exchange Commission, Hines said that it closed the deal on August 1. The shopping center was previously owned and managed by Edina-based Gabbert & Beck, which is led by prominent property owner Warren Beck. Jagger said that Hines will retain the mall’s current management staff.
Gabbert & Beck also owns the adjacent Westin hotel and condominiums, but that property was not part of the deal, a Galleria spokeswoman told the Star Tribune earlier this month.
The Galleria is located at 69th Street and France Avenue and features locally owned shops and specialty boutiques, in addition to upscale chains such as Tiffany & Company, Eileen Fisher, and Louis Vuitton. Jagger said that Hines does not expect changes to the mall’s tenant mix in the near future.
The mall, which first opened nearly 40 years ago, now occupies 417,000 square feet and is 97 percent leased, according to the Star Tribune.
Richard Grones, founder of Cambridge Commercial Realty in Edina, told the Minneapolis newspaper that it’s a good time for Beck to sell.
“The center’s full and it’s thriving,” Grones said. “Everybody’s remodeling or renewing their leases. If he’s looking to retire, maybe, and pull some money out of there, he might as well get while the gettin’s good.”