Hines' Dallas Galleria Announces Gap's First `Brand-based Anchor' Opening Today

Business Wire, Feb 1, 2002

Business Editors

DALLAS--(BUSINESS WIRE)--Feb. 1, 2002

Gap, Inc. opens three flagship-stores here today - all under one roof.

Each of Gap, Inc.'s flagship brands - Banana Republic, Gap and Old Navy will each occupy an entire floor of what was once a department store envelope. In total, the three stores occupy 127,639 square feet - Gap Inc.'s largest presentation of their brands in a shopping center anywhere in the world.

Designed by Callison Architecture, Inc., the three store levels are united by a beautiful common atrium that also provides a new entrance from the street. Banana Republic occupies 39,277 square feet on Galleria's level one with a new marquis street entrance and valet parking. Gap's store is 43,509 square feet on the center's second level accessed from the shopping center and the newly opened speed ramp directly to the second and third levels of the store. And Old Navy takes 44,853 square feet on the center's third level, also reached by the speed ramp access to the parking deck. Each store is the newest, state-of-the-art prototype for the respective brands.

In conjunction with the new store openings, Gap, Inc. will vacate five in-line spaces in the shopping center, totaling 39,030 square feet. The net gain within the center is 88,609 square feet. Average per-square-foot sales in Galleria stores are in excess of $500. The center is 96 percent leased. Kenton McKeehan, CLS/CSM of Hines represented the developer/owner in the transaction. McKeehan notes that the stores, with their various price points, "sync well with existing merchandising on Galleria's three shopping levels." In addition, he notes that the atrium will provide the center with more vertical transportation on the south end. "Our goal was to bring shoppers the best selection and depth of Banana Republic, Gap and Old Navy merchandise in one center in Texas. The result is more Gap per capita than anywhere else in the entire Southwest."

According to Hines Executive Vice President Staman Ogilvie, "We have been in business with Gap since we opened Galleria nearly 20 years ago. This new concept anchor represents the most significant partnership of any developer with Gap, Inc. at a single center. Also, the game of retail chess created by Gap, Inc.'s relocation has freed up prime in-line space. This has accelerated opportunities to bring unique stores to North Texas, such as Celine and Dunhill, who will open later this year exclusively at Dallas Galleria."

Revenues of Gap, Inc. are in excess of $13 billion and Texas is their largest market outside of their home state, California. Gap employs 166,000 people in 4,100 stores worldwide.

Hines is an international real estate firm whose portfolio currently includes more than 670 properties representing 216 million square feet of retail, office, mixed-use, industrial and residential properties worldwide. Hines' retail experience includes the development of the Gallerias in Dallas and Houston as well as Diagonal Mar, which opened last November in Barcelona. Access www.hines.com for more information.