By Steve Brown, Real Estate Editor

The expansion of Dallas' NorthPark Center shopping mall will cost more than $100 million and will open in 2006, the retail center's new half-owner said Thursday.

California-based Macerich Co. - which in May bought a 50 percent interest in the landmark shopping center - paid $75 million in cash and assumed another $85 million in debt, company officials said Thursday in a conference call with financial analysts.

The call provided the most detail to date about Macerich's investment in NorthPark and the subsequent launch of construction.

"We think that it will be one of the top three or four centers in the U.S. upon completion of the expansion two years from now," said Arthur Coppola, president and chief executive.

He said construction on a Nordstrom department store at NorthPark will begin in the next few months.

Mr. Coppola predicted it will be the highest-sales-volume Nordstrom in the area.

"NorthPark is one of the top centers in the U.S. today," he said.

"It boasts the highest-volume Neiman Marcus in the world - a Neiman Marcus that does in excess of $150 million."

And the Foley's and Dillard's stores are No. 1 in the D-FW area, Mr. Coppola said.

NorthPark has annual retail sales of more than $550 per square foot, according to Macerich.

The two-level retail addition to NorthPark will stretch between the new Nordstrom facing Boedeker Street and the Foley's store, which fronts North Central Expressway.

"It really creates a quadrangle," Mr. Coppola said.

Dallas' Nasher family, which built the mall in 1965 and remains a 50 percent partner, is funding the addition, he said. "All construction risks with that expansion are borne by our partner," Mr. Coppola said.

NorthPark's Dallas owners said they were aware of Macerich's Thursday disclosures.

"The center will continue to be managed and leased by NorthPark management company, which is owned by the Nasher family," said Lisa LeMaster, who handles the mall's public relations.

Along with the addition, NorthPark's owners are also studying redevelopment of the mall's vacant Lord & Taylor store.

"The Lord & Taylor building is going to be [re-leased with] other tenants," Mr. Coppola said. "We are talking to people like Robb & Stucky, the high-end furniture store, and people like REI," a sporting goods and outdoors store.

But he also said that the partnership is "debating whether to demolish the building and build fresh retail."

NorthPark has about 1.4 million square feet of retail space.

Macerich, which owns all or part of 62 regional malls, said that its investment in NorthPark should add 2 to 3 cents per share to its income next year.

It said its net income for the quarter ended June 30 was $17.1 million, or 29 cents per share, compared with $28.6 million, or 55 cents per share, for the same quarter of 2003.

Macerich's stock closed Thursday at $48.75, down 80 cents.

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