Great Mall of the Bay Area on market for $280 million

MILPITAS, Calif. (AP) The owners of the Great Mall of the Bay Area have put the mammoth shopping center on the market for $280 million.

Daniel Cetina, the mall's general manager, said owner Swerdlow Real Estate has received several inquiries from interested buyers since the 1.3 million-square-foot property was listed in February, even though the asking price is more than double what was paid for it five years ago.

Cetina said customers and merchants won't notice see stores closing or other negative changes while the mall is up for sale. About a dozen new stores, restaurants or entertainment venues are scheduled to open at the Great Mall by June, he said.

Built in 1994, Great Mall specializes in discount retailers and outlet stores. Its 10 anchor stores include Burlington Coat Factory, Marshall's and Old Navy.

Swerdlow has invested about $84.5 million renovating the mall, which sits on the site of an old Ford Motor assembly plant and was advertised as an important economic and cultural addition to Silicon Valley when it opened. The south Florida company bought the property in 1998 from the Ford subsidiary that originally developed it.

``We pretty much had a five-year plan,'' Cetina said. ``The company's strategy all along was to improve the Great Mall from all aspects leasing, occupancy, physical attractiveness, the overall net income.''

Under Swerdlow's ownership, the Great Mall let some underperforming tenants go, brought in about 50 new ones and reorganized stores that drew similar clienteles into distinct ``neighborhoods.''

Other major shopping malls nationwide are also up for sale, including the Del Amo Fashion Center in Torrance and the Lynnhaven Mall in Virginia Beach, Va., according to trade publication Real Estate Alert.

(Copyright 2003 by The Associated Press. All Rights Reserved.)