The 2.5 million sf at Del Amo Fashion Center, located at Sepulveda and Del Amo boulevards, includes 785,000 sf of anchor-owned space. The property ranks up there with the Mall of America in Bloomington, MN (4.2 million sf) and the King of Prussia Mall near Philadelphia (2.9 million sf) among the three largest mall properties in the US, according to the International Council of Shopping Centers.

The Mills Corp., a publicly held REIT, plans substantial redevelopment of the Del Amo property, which was built in phases between 1961 and 1975. A company spokeswoman tells GlobeSt.com that the mall's new owner is considering a number of possibilities, including a new anchor and entertainment tenants.

The center is anchored by Macy's, Macy's Home and Furniture Gallery, Sears, Robinson-May and JCPenney. Approximately 403,000 sf in the northeast wing of the property, including 220,000 sf of in-line space, systematically has been vacated for redevelopment. Mills' preliminary plans involve the redevelopment of approximately 670,000 sf of existing space (including the 403,000 sf in the northeast wing), and the addition of other retailers.

When the redevelopment is done, the company projects the center's gross leaseable area is will exceed 2.6 million sf. The redevelopment is expected to require up to an additional $160 million.

Mills is funding the purchase through a combination of debt and equity sources, including a $316-million mortgage closed at the acquisition time. The three-year, interest-only loan contains options for two one-year extensions. The interest rate is LIBOR plus 240 basis points. Additionally, the company will use proceeds from a recently completed preferred offering and capacity on its line of credit to fund the balance of the transaction. Mills also is considering private equity sources and may admit a partner in the future.

Mills owns, develops, leases, and manages 24 retail and entertainment centers totaling approximately 31 million sf and has seven projects under construction or development around the world.

Mills acquired the property from LA developer Guilford Glazer, whose Torrance Co. managed the property before the Mills acquisition. Calls to the Torrance Co. for comment were referred to Mills Corp.