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Simon to pay $333 million for Stanford Shopping Center

Simon Property Group has agreed to buy the 1.3 million-square-foot Stanford Shopping Center, Palo Alto, Calif., for $333 million.

The mall’s current owner, Stanford University, will continue to hold the ground lease under the super-regional open-air center, which is considered among the most dominant in its market and whose sales exceed $600 per square foot. Stanford Shopping Center's anchors are Bloomingdale’s, Macy’s, Macy’s Men’s Store, Neiman Marcus and Nordstrom.

Wells Fargo–owned real estate services firm Eastdil Realty helped arrange the deal, which the parties expect to close early next month.

"Stanford Shopping Center is the premier super-regional shopping center in the San Francisco Bay area and one of the top regional malls in the United States," said Simon CEO David Simon in a press release. "This asset is a perfect fit in our strategy to own and manage high-quality, high-productive retail real estate, it strengthens our presence in the West, and it reinforces our position as the marketplace leader."

Indianapolis-based Simon is the largest mall owner in the United States, with 238 centers nationwide. Stanford Shopping Center will be the company’s seventh mall in California.

The 46-year-old center underwent a $40 million expansion in December 2001 and went on the market in May.

Compiled by the staff of Shopping Centers Today. © July 01, 2003 International Council of Shopping Centers.