Investors who own Galleria Dallas want to jump-start development in the North Dallas commercial district and are starting out with a new property manager for the shopping center.
Fort Worth-based Trademark Property Co. is replacing Simon Property Group, the nation’s largest shopping center developer, which has operated the Galleria for investors UBS AM since 2009.
The area around the mall hasn’t looked too inviting the last few years, first from major road construction on Interstate 635. More recently, the former Valley View Center, which is partially torn down, is casting a downtrodden image across the neighborhood.
The Galleria, at I-635 and Dallas North Tollway, opened in 1982 and was one of the earliest mixed-use developments with a hotel and office towers attached. It has suffered traffic declines and store closures similar to other regional malls. But historically it’s been a destination shopping center, now anchored by American Girl, Belk, Macy’s and Nordstrom.
UBS is counting on the entire 450-acre district that includes Galleria, the old Valley View Center, office towers and surrounding property to be redeveloped. The goal is to turn around the area along LBJ Freeway, east on Preston Road, north of Alpha Road and west of the tollway.
“Our vision for this next chapter in the Galleria Dallas story is to position it as a leader in the resurgence of the neighborhood and as a vibrant mixed-use district,” said Matt Lynch, head of real estate and private markets at UBS AM.
UBS has hundreds of millions of dollars invested in the Galleria and said it’s planning to begin talks immediately with other stakeholders in the area. It’s also organizing retail, real estate and design experts and city officials to gather feedback on the future of the Galleria.
Using information from these sessions, Trademark and UBS said they will develop a strategic plan and initiatives for the property “based on market and customer research, industry best practices, and the continued evolution of the retail industry.”
UBS, a subsidiary of Swiss bank UBS AG, purchased the Galleria in 2002 for $300 million. In 2005, UBS bought the 432-room Westin Hotel attached to the mall. UBS is the biggest retail real estate owner in the neighborhood. CBRE Global Investors, an independently operated affiliate of CBRE, owns Galleria Towers.
In addition to the Galleria, UBS purchased the 30-acre Village on the Parkway in 2015. That shopping center is north of the Galleria on the tollway at Belt Line Road in Addison and is anchored by Whole Foods Market.
The former Valley View Center next door along LBJ has been partially leveled, and multiple owners there have plans for redevelopment, but the process has stalled. That has…