CalPERS will soon own the entire
1.1M-SF Woodfield Mall.

SCHAUMBERG, IL-Chicago Real Estate Daily reports that the California Public Employees' Retirement System agreed to pay more than $500 million for a 50% stake in Woodfield Mall in suburban Chicago. The article points out that CalPERS already owns 50% of the 1.1-million-square-foot regional mall, with Detroit-based General Motors Co.'s pension fund owning the other 50%.

The valuation of the enclosed retail property at 5 Woodfield Mall tops $1 billion, putting the CalPERS transaction at more than $900 per square foot. New York-based Eastdil Secured LLC is brokering the sale of the Woodfield stake and began seeking a buyer in August, 2012. The article explains that CalPERS beat out a field of bidders that included several large pension funds, Simon Property Group and Chicago-based General Growth Properties Inc. The GM pension trust acquired its Woodfield stake 14 years ago.

Woodfield Mall is the ninth largest shopping mall in the United States. In addition to the 1.1 million square feet that will be under CalPERS' ownership, Woodfield Mall boasts 1.1 million square feet of anchor stores not included in this sale.

Developed by Bloomfield, MI-based Taubman Centers Inc. (which continues managing the retail property), Woodfield was the largest mall in the U.S. when it opened in 1971 and is classified as a “fortress mall” — a top-quality property where customers' dollars are captured, surrounded by a “moat” of 10,300 parking spaces. The mall, which is 97% occupied, is anchored by Nordstrom, Macy's, Lord & Taylor, JCPenney and Sears.