(For more retail coverage, click GlobeSt.com/RETAIL.)
GREAT NECK, NY-While Feldman Mall Properties Inc. posted a net loss of $1.1 million for the three months ended Sept. 30, the company is focused more on its long-term interests than short-term profits. "While we're disappointed in near-term earnings, the outlook in the long term is that we'll prosper," said Larry Feldman, the firm's chairman and chief executive officer, during a third-quarter conference call.
One property under redevelopment that Feldman is particularly hopeful about is the Colonie Center Mall in Albany. "Colonie has the potential to be the most successful mall we've ever been involved in." As mentioned in the company's second-quarter call, Feldman says the firm is still searching for a joint venture partner on the redevelopment. "It makes sense due to the sheer magnitude."
Colonie, which Feldman acquired in February 2005, is undergoing a "massive" transformation Feldman pointed out, adding that a strong national retailer is expected to sign on for 30,000 sf within the next 30 days. He added that two "major draw" restaurants are expected to take a combined 20,000 sf. The redevelopment effort is estimated to cost $30 million.
Shop occupancy, excluding temporary tenants and anchor tenants, was 74.8% at Sept. 30. Including temporary tenants, shop occupancy was 86.2%. Average shop sales for shop tenants with less than 10,000 sf, were $297 per sf. Average shop rents, excluding temporary tenants, were $19.59 per sf. Feldman anticipates that average shop sales figure will raise "sharply" due to the incoming tenant base and the redevelopment effort.
Throughout its portfolio, Feldman has entered into letters of intent and is in active lease negotiations with more than 200,000 sf of new tenants. Feldman said several of these tenants are national tenants with a "particularly strong appeal to draw additional shoppers to the company's malls."
During the summer, the company purchased Northgate Mall, a 1.1-million-sf enclosed mall located in the northwest suburbs of Cincinnati for $110 million. It features anchor tenants Macy's, Dillard's, Sears and J.C. Penney. The company added Wayne Snyder as chief development officer to oversee all redevelopment efforts. Before joining Feldman, Snyder spent 10 years as the chairman and chief executive officer of Kravco Co., a retail mall company in Philadelphia.
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