Dallas’ famed Galleria is the latest in a string of DFW malls to be handed back to its lender.
Ownership of the mall and the adjoining 432-room Westin Galleria Hotel has been taken over by MetLife Investment Management, a unit of Metropolitan Life Insurance, according to the Dallas Morning News.
Specifics of the transaction were not disclosed. However, a spokesperson with MetLife told the DMN the firm has “a proven track record in institutional real estate and a dedicated team in the Dallas area.”
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The office buildings on the property, which are under separate ownership, are not included in the deal, per the DMN.
The 1.9M SF mall and hotel have been owned by UBS Realty Investors since 2002 and 2005, respectively. UBS paid a combined $395M for both assets, which the DMN reported were most recently valued in property tax records at $200M.
Trademark Property Co., which was working with UBS on plans to redevelop the property and add more uses, will continue to oversee management of the Galleria, per the DMN.
Malls have faced a nationwide reckoning in the aftermath of the pandemic, which made online shopping the modus operandi overnight and left traditional brick-and-mortar retailers scrambling to modernize.
Year-over-year visits for indoor malls and open-air lifestyle centers dropped for the third consecutive month in October, according to Placer.ai’s Mall Index. The gaps are much slimmer this year than last when compared to 2019, but visits still fall below pre-pandemic averages.
Lenders have also taken back the keys at Willow Bend Mall in Plano and Vista Ridge in Lewisville, per the DMN. Both properties were sold at a loss to new owners.
Other struggling mall properties, like RedBird Mall in Southern Dallas and Collin Creek Mall in Plano, saw development teams swoop in and spend billions on transforming the properties into mixed-use destinations.
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