Part of the $1.5-billion Venetian Resort Hotel Casino complex that replaced the Sands Hotel, the Grand Canal Shoppes will be acquired with a five-year non-recourse fixed-rate mortgage debt and a new five-year fixed rate unsecured term loan. Archon Financial, LP is the current lender. Closing of the deal with Las Vegas Sands, Inc. is set for May 17. The price for the Palazzo retail space will depend on the actual square footage built and net operating income during its 30 first months.

"The Grand Canal Shoppes is one of the premier shopping and tourist destinations in the world," says General Growth Properties chief executive officer John Bucksbaum.

Open for five years, the Grand Canal Shoppes includes 407,077 sf on two levels within the Venetian complex as well as another 38,074 sf in three stories facing Las Vegas Boulevard. Revenues last year totaled $36.5 million, according to Las Vegas Sands, Inc.'s recently-filed annual report.

Amen Wardy, Canyon Ranch Living Essentials, Kenneth Cole, Jimmy Choo, Mikimoto, Movado, Burberry, St. John Sport, Pal Zileri and Dooney and Bourke are among the retail tenants while Wolfgang Puck's Postrio, Canaletto, Taqueria Canonita and Zefferino are among the restaurants.

The property is across the street from the 2,900 room Treasure Island Hotel and Casino and the 3,049-room Mirage. While the Palazzo is expected to open in 2006, the 2,700-room Wynn Las Vegas is set for an opening next year.