Owner to Seek Buyer for Mall of America

The world’s biggest pension fund said it plans to put the U.S.’ biggest shopping mall, the Mall of America in Bloomington, Minn., up for sale.

The 4.2-million-square-foot complex, which includes more than 520 stores, an indoor theme park and an aquarium, could fetch between $650 million and $700 million, according to people familiar with the situation.

“The enormous success of Mall of America, plus the very favorable climate in the commercial real estate arena right now, make this an ideal time for potentially maximizing our investment,” said Joseph Luik, an executive with the Teachers Insurance & Annuity Assn.-College Retirement Equity Fund, the mall’s owner.

Mall of America opened in 1992 with a total development cost of more than $680 million.

At the time of construction, many people criticized the mall, saying such developments were causing the deterioration of the nation’s downtown areas and the problems faced by independent merchants.

Today, the mall’s management says it has more than 40 million visits a year and is the No. 1 U.S. tourist destination, exceeding Disney World, Graceland and the Grand Canyon combined.

Professional wrestling matches, rock concerts and more than 1,000 weddings are some of the events the mall has hosted.

On the drawing board is the development on adjacent land of an education-based “Hyperport” almost the same size as the mall. Hyperport visitors will be able to fly a space shuttle simulator, splash in a water park or fish year-round.

A likely buyer for the property is Indianapolis-based Simon DeBartolo Group Inc., the largest U.S. shopping mall owner and developer, said people familiar with the situation.

Simon DeBartolo manages the property, and a closely held investment company headed by Chairman Melvin Simon helped develop it and still holds a small equity stake, along with closely held mall developer Triple Five Corp.

Simon DeBartolo officials declined to comment.

Teachers hired Salomon Smith Barney Inc. and Rockwood Realty Associates to market the property.