Brentwood Home Page news reports
BLOOMFIELD HILLS, Mich. – The Mall at Green Hills is being sold to Michigan-based developer. Taubman Centers Inc. announced an agreement Tuesday morning. It will also purchase The Gardens on El Paseo/El Paseo Village in Palm Desert, Calif.

The purchase price for the properties from Davis Street Properties of Evanston, Ill. is $560 million, excluding transaction costs.

"These high quality assets, which are dominant in their respective marketplaces, are an excellent strategic fit for our company," said Robert S. Taubman, chairman, president and CEO of Taubman Centers.  "We are projecting their sales to exceed $700 per square foot on average in 2012.  The occupancy costs of these centers average below 10 percent – significantly less than the occupancy costs of our portfolio.   As a result, we believe there is an opportunity to substantially increase their Net Operating Income over time."

 The consideration assumes approximately $206 million of debt, up to $80 million of partnership units in The Taubman Realty Group Limited Partnership (TRG) and the balance of approximately $274 million in installment notes.  The number of partnership units will be determined based on a value of $55 per unit.  

The transaction has been approved by Taubman Centers' Board of Directors.  It is subject to due diligence and is expected to close in the fourth quarter of 2011.

The Mall at Green Hills, originally constructed in 1955, is the dominant fashion shopping destination in Nashville.  It has been expanded and renovated many times over the years, including the most recent expansion which added a 149,000 square foot Nordstrom that opened in September.

Taubman Centers is a real estate investment trust engaged in the development, leasing and management of regional and super regional shopping centers. Taubman's 26 U.S. owned, leased and/or managed properties, the most productive in the industry, serve major markets from coast to coast. Taubman Centers, founded in 1950, is headquartered in Bloomfield Hills, Michigan and its Taubman Asia subsidiary is headquartered in Hong Kong.  For more information about Taubman, visit www.taubman.com.