Michigan-based firm Taubman Centers Inc. is buying out the Green Hills Mall along with two other luxury malls located in Palm Desert, Calif. for $560 million, it announced Tuesday. Taubman Centers Inc. is no stranger to operating luxury malls and their offer to purchase the Green Hills Mall shows stability in the Nashville retail market. Taubman Centers owns 26 regional shopping centers nationwide and in July, their second-quarter earnings climbed 9.8 percent due to steeper rent prices and higher occupancy rates from its luxury mall holdings.
The Mall at Green Hills is said to be one of the Southeast’s crown jewels of malls which makes it a highly desirable mall to mall owners, Taubman included. The addition of Nordstrom and its location in the vibrant and fast growing city of Nashville played a big part in his decision to purchase the mall.
The purchase price includes $206 million in assumed debt, up to $80 million of Taubman’s partnership units and $274 million in installment notes, according to a Taubman statement.
While the mall will be under new ownership, shoppers are said to experience no major changes. Store owners, however, may be facing higher rent. The new ownership will be finalized sometime next year.