MALLMAKER NUMBER TWO:

GENERAL GROWTH PROPERTIES

Next in line, in the succession of America's MALLMAKERS, is today's General Growth Properties. Formed in Cedar Rapids, Iowa in 1954, the General Management Corporation expanded its focus from the operation of a supermarket and built its first strip shopping center in Cedar Rapids. TOWN AND COUNTRY CENTER was completed in the same year that the company was created.

A move to Des Moines, Iowa, in 1960, was undertaken so that General Management could effectively oversee the construction and leasing of its first shopping mall. DUCK CREEK PLAZA, located in the "Quad City" of Bettendorf, Iowa, was anchored by Des Moines-based Younkers and came inline during 1960.

The corporation became General Growth Properties in 1970, but was liquidated in 1984. General Management, the management arm of the company, continued to oversee the operation of some of the corporation's shopping centers.

A new REIT, known as General Growth Properties, was formed in 1993. In 1995, the corporate offices moved from Des Moines to Chicago. With its acquisition of the Homart Development Corporation -also in 1995- GGP became the nation's largest shopping mall owner-operator.

However, one year later, the Simon Property Group's buyout of the DeBartolo Realty Group moved that REIT into the number one position.

News of GGP's financial woes began to circulate in late 2008. The problems were the result of the meltdown of the financial system, in general, and also due to GGP's overly-aggressive buyouts of several smaller mall operating companies during the 1990s and 2000s.

A chapter 11 bankruptcy was filed April 16, 2009; the largest shopping center-related real estate bankruptcy in US history. On November 19, 2009, it was announced that aggreements had been reached, in principal, in regards to restructuring nearly 9 billion dollars worth of secured mortgage loans.

The GGP press release went on to say that said agreements are subject to various conditions and approvals.

Sources:
www.ggp.com
"General Growth Properties" article on Wikipedia