Built in 1994 and last renovated in fall 2002, the center has average specialty tenant sales of $319 per sf (2002) and currently is 86.4% occupied, not including 60,000 sf of expansion space that will be leasable in early 2004. The purchase price translates to an 8.6% capitalization rate, according to Mills, which plans to renovate the mall and then re-brand it as a 'Mills' destination property.

"This acquisition provides us an entree, on very good terms, into one of the best markets in the country," says Mills COO Kenneth Parent. "The nearby Silicon Valley is emerging from its recent economic troubles and we feel it is on the verge of a strong comeback. Given the demographics of the area, this property could become one of our most successful centers."

Located at the convergence of Interstates 660 and 880 and Highway 237 and US 101 in Silicon Valley, Great Mall is the largest outlet mall in Northern California. Approximately 18 million shoppers visit the center each year and within 10 miles there are more than one million people with a median household income of more than $70,000.

The mall features a signature racetrack layout, themed neighborhoods, value-retail tenants and family entertainment venues. Anchors include Off 5th - Saks Fifth Avenue Outlet, Old Navy, Burlington Coat Factory, Dave & Buster's and a 20-screen Century Theatres; specialty tenants include BCBG Max Azria Outlet, Polo Jeans Factory Store and St. John Knits Outlet.

The acquisition was partially funded through a new five-year, interest-only $175 million mortgage. The interest rate on the loan is fixed at 4.8%. The company financed the balance of the acquisition cost through its recently announced $500 million credit facility.

Great Mall is The Mills' fourth California property, joining Ontario Mills, The Block at Orange and the recently acquired Del Amo Fashion Center, all in the greater Los Angeles area.

Since November 2002, Mills' portfolio has grown, through development and acquisition, from 13 to 25 operating properties and from 19 million sf to 32 million sf of gross leasable area. The company's stock price is also growing, hitting a 52-week high of $35.89 on July 31. Wednesday morning, shares were trading at $34.92, off $0.08 from Tuesday's close.