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 Growth Properties, the owner of the high-profile Glendale, Calif.,mall, which houses large retailers such as Macy’s and Target, as well as specialty stores 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 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. 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.The Galleria and the Americana sit side-by-side in downtown Glendale. On high-traffic days, there is a steady stream of shoppers crossing South Central Avenue between the two retail properties. “We have to view this as one retail area,” Mathrani said. There has been no formal agreement between the two mall companies. Caruso Affiliated did not respond to an email requesting comment. Nordstrom also did not return an email requesting further comment on its deal. Its move to Americana will be complete in 2013.
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. It 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 email requesting details on the renovation.—Andrew Asch
