General GrowthInc.and TIAA-CREF formed a partnership to own and operate The Grand Canal Shoppes, including The Shoppes at the Palazzo in Las Vegas.
The Grand Canal Shoppes is located at the heart of the Las Vegas Strip within The Venetian and The Palazzo, casino and resort complex. The property is 99 percent leased and comprises approximately 774,000 sq. ft. of gross leasable area occupied by upscale retailers and restaurants. The Grand Canal Shoppes generates more than $1,000 of sales per sq. ft.
Effective with the partnership formation, GGP and TIAA-CREF will each own approximately 50 percent of The Grand Canal Shoppes. The partnership is limited to the retail portion of the property. Prior to the formation of the partnership, GGP owned 100 percent of the property. The transaction generated approximately $410 million of net proceeds, and GGP will continue to provide management andservices.