Woodmont associate Eddie Myers tells GlobeSt.com that the four deals are just the beginning. Myers, who specializes in enclosed mall assignments, joined Woodmont 10 months ago and has been working on the initiative ever since. He admits he is targeting a niche market of ownership since many enclosed malls are controlled by the big boys in the industry either through in-house teams or third-party affiliates. Myers fervently believes there's room for some competition, particularly for properties controlled by institutions or smaller private investors. Management contracts as well as leasing pacts are on Myers' radar screen.
The catches to date consist of a three-mall portfolio of Alliance Management Inc., an affiliate of Los Angeles-based Alliance Retail Group, and the Roswell Mall, owned by Zuber Properties RM Inc. of Waco, TX. The Texas malls are the 1.2-million sf San Jacinto Mall at 1496 San Jacinto Mall near Interstate 10 in Baytown; 1.7-million sf Greenspoint Mall at 12300 N. Freeway in Houston; and 245,00-sf Crossroads Mall at 6834 Welsey St. in Greenville, situated 40 miles east of Dallas.
All four "vintage" malls, handled before by in-house teams, seriously need occupancy boosts, but the outlook is good, Myers says. Some 100,000 sf of deals are in the pipeline for the Houston-area malls while 25,000 sf in new deals are pending at Greenville.
Roswell's turn-around from a 75% occupancy is more challenging since New Mexico's fourth-largest city isn't high on the list for many national retailers, even though it's bringing $275 per sf in sales volume, he explains. The 350,000-sf Roswell Mall at 4501 N. Main St., opened in 1984 and is anchored by a Wal-Mart, JCPenney and Bealls.
The key for all, says Myers, is to "reinvent" the tenant mix, a necessity in today's world of big box exits and Chapter 11 filings. The 26-year-old Greenspoint Mall has a vacant Montgomery Ward's building while the 21-year-old San Jacinto has an empty Ward's and Service Merchandise. The 85%-occupied Greenspoint has, however, held onto its anchors of Foley's, Dillard's and Palais Royale. Still in place at the 70%-occupied San Jacinto are Foley's, Mervyn's, Sears, Marshalls, JCPenney and Palais Royale. The 20-year-old, 70%-occupied Crossroads is anchored by Bealls, Goody's and JCPenney.
Each mall requires a different re-tenanting approach, says Myers. It's a case of "going out there, doing your homework and creating a situation that will make people want to come to shop at the mall," he professes.
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