The Twin Cities' most opulent shopping center — the Galleria in Edina — is for sale.
Its owner, Houston-based Hines, listed the center as part of a plan by parent company Hines Global REIT Inc. to sell all or most of its assets. The Chicago office of commercial real estate firm Jones Lang LaSalle has the listing.
"As stewards of this premier shopping center since 2012, we are proud of the way we have elevated it through the exciting mix of retailers and restaurants, upgrades and expansions," Sargent Johnson, managing director of asset management at Hines, said in a statement.
Hines representatives did not comment on whether it may be looking for simply an owner or a firm that would both own and manage the mall. Existing Galleria office staff may be replaced if a buyer steps forward to own and manage it.
Dick Grones at Cambridge Commercial Realty in Edina wasn't surprised Hines decided to sell. "Every five to seven years they redeploy their money and put it into something else. It's a strategy they've been doing for years," he said.
Hines has owned the Galleria since 2012, when it bought it for $127 million from the mall's original developers, Gabbert & Beck.
The Galleria boasts one of the highest sales per square foot of any Twin Cities mall and has seen less turnover. The listing puts the occupancy rate at 95%.
Although the center lost tenants in 2019, many were local retailers that moved or national chains that closed most or all of their stores.
Restoration Hardware, Z Gallerie, Scheherazade Jewelers, Oh Baby! and Creative Kidstuff closed in 2019, but most have been replaced with a mix of national and local retailers and services such as Peloton, Face Foundry skin care, Suitsupply, Nic + Zoe, Legacy Toys, Johnny Was bohemian fashion, and J.W. Hulme leather products. Lili Salon and the new Tonic Barber will move in late February to the former Z Gallerie space.
This year the Galleria will lose Gabberts, which is moving, and Papyrus greeting cards, which is expected to close all of its stores in four to six weeks.
Major tenants at the center include home furnishings outlets Gabberts, Crate & Barrel, Design Within Reach and Arhaus. High-profile retailers include Tiffany & Co., Warby Parker, Louis Vuitton and Sundance.
The Galleria has undergone several major expansions since it opened in 1972, including a 2008 addition of the Crate & Barrel wing and the Westin Hotel and a 2017 east-wing expansion after Barnes & Noble moved to the lower level.
The exit of Gabberts may allow for construction of a hotel, condos or luxury apartments and office space, Grones said.
