Glendale Galleria to Be Renovated
The Glendale Galleria will get a facelift this summer.
The renovation was announced by Sandeep Mathrani, chief executive of General GrowthProperties, the owner of the high-profile Glendale, Calif., mall, which houses large retailers such as Macy’s and Target, as well as specialtystores such as Michael Kors and Bebe.
Mathrani made the announcement April 27 during a conference call with Wall Street analysts.
The news followed the March announcement that the Galleria’s Nordstrom will move across the street to a competitor, the Americana at Brand retail center. Americana owner Rick Caruso bought Nordstrom’s Galleria property, which had been owned by the Seattle-based retailer, for an undisclosed price. The Galleria was informed about the deal the same day it was announced to the press.
Mathrani blamed the loss of Nordstrom on GGP’s Chapter 11 bankruptcy, which left the Galleria unable to upgrade the 35-year-old shopping center. “It was one of the unfortunate results of being in bankruptcy, being cash constrained and not willing to spend on a renovation,” Mathrani said.
Mathrani joined the company in October 2010, after the company declared bankruptcy. GGP emerged from bankruptcy in November.
Caruso made an offer to find a new tenant for the Galleria’s Nordstrom space and offered to help renovate the Galleria. During the call, Mathrani seemed to approve of the unique offer.
Nordstrom’s move to the Americana will be complete in 2013. Nordstrom owns the land where some of its stores are located. It leases other properties. Out of its 204 stores, 169 are on leased land, 34 are on owned land, and one is partly owned and partly leased.
During the investor call, Mathrani said his company will spend up to $1 billion in the next three years to renovate 131 of its properties across America. The company also plans to spend more than $53 million to purchase eight big-box properties based on GGP land, and, like the Galleria Nordstrom, these department-store-sized spaces are not owned by GGP.
The renovations and buying the unsecured big boxes will ensure GGP malls would remain the finest in their areas, Mathrani said. “It’s a defensive move to make sure you don’t give the opportunity for another lifestyle center to be built across the street,” he said.
Galleria management did not respond to an email requesting details on the renovation. —Andrew Asch
