Knollwood Mall has found a suitor just after getting its big face-lift.
Heitman, a real estate investment management firm in Chicago, is purchasing the 60-year-old shopping center, according to St. Louis Park city officials.
The chief executive of the property’s owner, New York-based Rouse Properties, revealed it was selling the center for $106.7 million during its third-quarter earnings report in November, but didn’t reveal the buyer’s name.
“We have executed a contract to sell Knollwood Mall upon completion of our redevelopment, demonstrating the value … while recycling capital to reinvest in higher yielding growth opportunities,” said Andrew Silberfein, Rouse’s president and chief executive.
Knollwood was Rouse’s only real estate investment in Minnesota.
The mall, which sits near Hwys. 7 and 169, is in the final stages of a $32 million renovation to transform it into an outdoor shopping center. Tenants include Kohl’s and Old Navy.
Built in 1955, the shopping hub has had multiple owners and survived disruptive trends in the Twin Cities retail market. The viability of the location is bolstered by its busy commercial neighborhood, where the average household income is $93,000.
The property sale is expected to close this month, and possibly as early as this week, St. Louis Park officials said. Rouse and Heitman did not return phone calls.