The tax-deferred exchange resulted in an after-tax gain of $51million and generated $73 million in cash proceeds, according toForest City. The developer's 67 1/2% tenancy-in-common interestpreviously was optioned for $121.5 million Tucson Mall was built in1982 and expanded in 1991.

Charles A. Ratner, Forest City president and CEO, says the saleis a prime example "of our disposition strategy in action and ourability to surface the value of our real estate." He says theproceeds will be reinvested into higher-yielding projects. ForestCity currently is developing the Mall at Robinson in Pittsburgh andMall at Stonecrest in Atlanta, both boasting pre-leasing of 85%.Opening in September is the 455,000-sf Queens Place in Queens, NY,an urban retail center that's now more than 95% leased. Forest Cityalso has just unveiled plans for a new project at Station Square inPittsburgh.

For General Growth, it enlarges its footprint in Tucson's retailmarket. General Growth is the owner of Park Place, which boastsmore than 1.3 million sf of shops in east Tucson. "We expect tocreate tremendous synergies between the two properties throughimproved results in management, marketing, leasing and specialtyleasing," John Bucksbaum, General Growth Properties CEO, says in aprepared statement.