Glendale Galleria Purchased

General Growth Properties Inc. said Wednesday that it has completed its $415-million purchase of the Glendale Galleria shopping mall, and also bought a San Francisco Bay Area mall for $89 million.

The dual purchase gives the second-largest U.S. mall owner strong flagship properties in California.

The Galleria, whose tenants include Macy’s, Nordstrom and JC Penney, generates annual retail sales per square foot of $525, about 60% above the industry average.

General Growth also bought Southland Mall in Hayward, Calif., which it managed before the acquisition, said Beth Coronelli, a company spokeswoman. Developed in 1964, the 1.3-million-square-foot mall has been expanded and renovated. It is the second-largest enclosed regional mall in San Francisco’s East Bay.

Chicago-based General Growth, which has 169 regional malls in 41 states, has helped lead a consolidation in the U.S. mall business as landlords jockey for the best properties to gain leverage in negotiating leases with retailers.

During the 1990s, General Growth bought $7 billion worth of malls.

General Growth bought Glendale Galleria in a 50-50 joint venture with the New York State Common Retirement Fund.