One property under redevelopment that Feldman is particularly hopeful about is the Colonie Center Mall in Albany, NY. "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 each expected to take 30,000 sf within the next 45 days. 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, OH for $110 million. It features anchor tenants Macy's, Dillard's, Sears and JC 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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