Mall of America closes on financing for expansion

The Mall of America confirmed Monday that it has closed on the financing for its upcoming Phase 1C expansion project, paving the way for groundbreaking to occur later this month.

The $300 million expansion — located on the north side of the existing mall — will include a 342-room JW Marriott luxury hotel, the MOA Crossing office building, 150,000 square feet of upscale retail, a new dining area and an underground parking ramp.

The Shakopee Mdewakanton Sioux Community will cover the $105 million development cost for the hotel, which it will own and operate.

The mall's ownership group, Triple Five, will pay for the $110 million retail and $44 million office components of the project, according to Kurt Hagen, the company's senior vice president of development. The city of Bloomington will pay for the parking and public infrastructure costs, which are estimated at $34 million.

Tenant build-outs could add another $15 million to $20 million to the total project cost.

Mall of America officials have been targeting a fall 2015 opening.

Golden Valley-based M.A. Mortenson Co. is the mall's development partner for the project and will oversee the construction.

Reported by:  Mpls | St.Paul Business Journal