Taubman Centers Inc. completed the purchase of The Mall at Green Hills in Nashville, Tenn., and The Gardens on El Paseo and El Paseo Village in Palm Desert, Calif., from Davis Street Properties.

"These transactions crown a year of progress on our external growth initiatives," Taubman Presdient and CEO Robert S. Taubman said in a statement. "With the addition of these assets, we've enhanced both the quality of our portfolio and its anticipated growth rate."

The transaction was originally announced in October.

The Mall at Green Hills, originally constructed in 1955, has been expanded and renovated many times over the years, including the most recent expansion which added a 149,000-sq.-ft. Nordstrom that opened Sep. 16, 2011. The property has 887,000 sq. ft. of total GLA and 375,000 sq. ft. of mall tenant GLA and also is anchored by Dillard's and Macy's.

The Gardens on El Paseo and El Paseo Village are two adjacent properties across the street from each other, but they operate as a single open-air specialty center. The Gardens on El Paseo was built in 1998 and El Paseo Village was completed in 2010. Together, they offer 236,000 sq. ft. of total GLA including a Saks Fifth Avenue and 186,000 sq. ft. of mall tenant GLA occupied by fashion-oriented shops.

The consideration for the properties totals $560 million, excluding transaction costs. The consideration consists of the assumption of $206 million of debt, $281 million in installment notes and the balance in 1.3 million partnership units in The Taubman Realty Group L.P. The installment notes are fully cash collateralized with funds drawn from the company's lines of credit. The notes bear interest at 3.125 percent, and will be repaid with the cash collateral on February 20, 2012. The number of partnership units issued was determined based on a value of $55 per unit. The partnership units will become eligible to be converted into Taubman Centers' common shares after one year. Prior to that date, holders will have the ability to put the units back to the company at the lesser of the current market price of Taubman Centers' common shares or $55 per share.