The "dead" University Mall

[Aporkalypse]

Simon hires a LR PR firm to handle the situation and they had the following press release today:

NEWS RELEASE

Taking the next step in a productive dialogue that began when a delegation of Little Rock leaders visited its headquarters in August, Simon Property Group, Inc.

(NYSE:SPG), the country

[theman]

Let's see if Simon and the owners make nice and the property is actually redeveloped. It would be a great addition to Park Plaza and Midtowne.

[RyanA]

Let's see if Simon and the owners make nice and the property is actually redeveloped. It would be a great addition to Park Plaza and Midtowne.

[dookmaster]

If University is rebuilt, Simon will have to wait a while. Many of the stores left still have leases out a couple of years, so Simon would either have to buy them all out or wait out the leases. Plus the trial. Plus the landowners. Plus the time of development. If they started the process today, it could be 3 to 5 years before anything substantial happens.

[turboturtle]

If University is rebuilt, Simon will have to wait a while. Many of the stores left still have leases out a couple of years, so Simon would either have to buy them all out or wait out the leases. Plus the trial. Plus the landowners. Plus the time of development. If they started the process today, it could be 3 to 5 years before anything substantial happens.

[Cru Jones]

I agree. I have seen Simons proposal for the redevoped site. It is underwhelming. The site is anchored by Target. I have no problem with a Super Target, something with groceries. The site deserves something with more ambition. Think about the PR campaign the Simon had behind the Summit Mall... The made it sound like they were going to build heaven on earth. This PR reports smacks of desparation because they know they are losing the lawsuit.

Does anyone believe that a redeveloped University Mall site should NOT have a state-of-the-art theater complex?

[Aporkalypse]

I agree. I have seen Simons proposal for the redevoped site. It is underwhelming. The site is anchored by Target. I have no problem with a Super Target, something with groceries. The site deserves something with more ambition. Think about the PR campaign the Simon had behind the Summit Mall... The made it sound like they were going to build heaven on earth. This PR reports smacks of desparation because they know they are losing the lawsuit.

Does anyone believe that a redeveloped University Mall site should NOT have a state-of-the-art theater complex?

[Aporkalypse]

More on Simon from Rory Brock at TalkBusiness:

Simon Property Group, owners of University Mall and McCain Mall, announced plans to make radical changes to its University Mall property yesterday turning the mid-town eyesore into a mixed-use site with retail, office and residential space.

Simon says it wants to demolish the existing

[turboturtle]

But a lot stands in the way between now and then, he warns. While Richardson says renegotiating the land lease is the

[dookmaster]

On the local news this morning a Simon spokesman said a new project at University may not begin for nearly five years and that all leases for current merchants would be upheld. There are some leases into 2009, so that would be the earliest they could break ground. You're not looking at a significant new center till at least 2010 or 2011. What's funny is, by that time, other malls in the area ie Shackleford, North Hills, Promenade could be stealing of lot of Midtown's thunder.

[Cru Jones]

On the local news this morning a Simon spokesman said a new project at University may not begin for nearly five years and that all leases for current merchants would be upheld. There are some leases into 2009, so that would be the earliest they could break ground. You're not looking at a significant new center till at least 2010 or 2011. What's funny is, by that time, other malls in the area ie Shackleford, North Hills, Promenade could be stealing of lot of Midtown's thunder.

[Aporkalypse]

This is closer to the vision of the Midtown Redevelopment Advisory Board.

http://www.greenerbuildings.com/case_studi...LinkAdvID=66100

Simon's position has probably not changed much since Summit Mall era... What do you think they would have done had summit mall worked-out for them? Answer: tear down University Mall and put in a Target.

What little change that has occurred, such as their contributing to the ULI study they promised to pay in 2000 and the increased dialog of in the past six months, is due to the pressure of losing the lawsuit.

I am still in the camp that it is best for the City for Simon to be out of the University Mall business. Otherwise, they better start talking details about a redevelopment that suits Midtown Little Rock, not suburban West Little Rock. Seriously, there will probably not be another opportunity to establish the appropriate look and feel of this area Little Rock in our lifetime.

[turboturtle]

Have you ever seen Mockingbird Station in Dallas? It was developed around a DART station but it incorporates a parking deck, movie theater (arthouse-style), a variety of retail and restaurants in "open" fashion with loft-style apartments over the development for 3-4 floors. There also is an office building component that has a health club and a couple more restaurants on the upper floors. It would fit perfectly on the University Mall property. Clearly I don't want a replica, but I could see a very similar development doing exceptionally well.

[Aporkalypse]

Judge Howard is an octogenarian. Ask your legal friends about what kinda reputation he has. He needs to rule. This thing is likley to go to appeal one way or another.

I fail to see why Mr. Strode would introduce this kind of risk to his business model?

Given this Gordian Knot, efforts should be focused on supporting the City's (Stacy Hurst) efforts and the Midtown Redevelopment Advisory Board. If the City would form the Midtown Redevelopment Authority they could buy the propery and control how it is developed.

[RyanA]

I really hate the fact that this wasn't done a long time ago. When I was younger (I'm probrably not the only person) I noticed that University used to have good competion with Park Plaza. But It was like when Montgomery Ward left the mall died then. It seemed like the mall fell so fast and there was nothing that could be done about it. Maybe the city or the land owners should have then did something to get Simon Inc. to do something about University. Now here we are having to look at this embarassment of a structure. I never take my cousin from Chicago there because of it's conditions. It's like a blood clot in Midtown Little Rock. If we could get it out then the area will be better off. It's our future of the Rock town and as a future major destination we don't need things like this in the way.

And why is Simon's McCain Mall doing so well? Is it location? Is it tenants? Other?

[Hillcrest_LR]

And why is Simon's McCain Mall doing so well? Is it location? Is it tenants? Other?

[Aporkalypse]

McCain Mall is the focal point for all retail north of the river. All other retail has radiated out from it. The Other Center, Lakewood Village, then the development north on 67, now all the development on McCain east of 67. It has never gone through a down phase.

[Architect]

McCain never had competition and University did. Like you said, though, it's the heart of an entire retail corridor whereas in Little Rock most of the development couldn't occur near the malls because that land was already developed so it went out in West LR instead. Otherwise shopping centers would line Markham and University around the two malls.

Simon isn't keeping up well with McCain, either, though. Little has changed in that mall in two decades.

[dookmaster]

Park Plaza's management will be putting in closer to $20 million when it ends. Simon doesn't remodel b/c I'm sure it's cheaper to forego remodel for rebuilding completely after 25-30 years. How many popular malls are there around that are over 20 yrs old. Park Plaza was completely torn down and rebuilt in the 80's. University is a good mall if they'd redo it and get a couple of anchors. IF they put a Target supercenter in there, just think of who else will come in there. High price tenants are not going to sit next door. What other mall has a Target and Sak's touching. They could just remodel completely for 20 or 25 mill and put in a Target, some restraunts, etc without having to create a huge crater there for five years while waiting to rebuild a collosus center that will be going against many new malls all across central AR.

[theman]

Park Plaza's management will be putting in closer to $20 million when it ends. Simon doesn't remodel b/c I'm sure it's cheaper to forego remodel for rebuilding completely after 25-30 years. How many popular malls are there around that are over 20 yrs old. Park Plaza was completely torn down and rebuilt in the 80's. University is a good mall if they'd redo it and get a couple of anchors. IF they put a Target supercenter in there, just think of who else will come in there. High price tenants are not going to sit next door. What other mall has a Target and Sak's touching. They could just remodel completely for 20 or 25 mill and put in a Target, some restraunts, etc without having to create a huge crater there for five years while waiting to rebuild a collosus center that will be going against many new malls all across central AR.

[Aporkalypse]

Simon just doesn't care about this area. In LR they put so much time and effort in Summit Mall that they let University Mall wither and die. And as others have said they have no competition in NLR so why reinvest in McCain Mall.

The owners of Park Plaza are proving that with the right tenant mix and reinvestment in a property, an indoor mall can be successful.

Simon is saying that it is going to honor the leases and take five years to redevelop University Mall to pressure the owners to redo the lease. They could break those leases if they wanted to redevelop the property sooner.

[RyanA]

Simon does the same thing everywhere. Down here in Dallas they've let a couple of nice malls in good areas of town out to try by not bothering to remodel them. One of them is Richardson Town Square, which actually reminds me a lot of University in its prime (but nicer). The let it rot the same as University and tenants flooded out when Simon opened a new mall ten miles away, Firewheel Town Centre.

[Aporkalypse]

So that's what Simon wanted to do with the Summit Mall. I really hate that. Why? He should be sued for making malls standout in it's surroundings in a bad way. LOL.

[Nomadic]

I have even been told by an "insider" that University (the actual mall structure) is in better shape than McCain. I am in McCain Mall and this place looks like swiss cheese when it rains. It has had zero updates in the last 20 years except they repaint the borders on the exterior doors and the rails outside.

By the way, the escalator has been down in here for a month now due to some child getting his foot caught in it. The escalator in JC Pennys was rebuilt a little while back and it took less than a month to complete. JC Pennys paid for all new parts. The escalator in the center of the mall needs all new parts but because Simon is trying to save money and penny pinch, the company working on that escalator told me that they say see no way that thing will be working before December. It might take well into Christmas Season. That will be a complete nightmare in this mall.

The best thing that could happen to McCain mall is it to be sold to another company, like Park Plaza was to CBL. Thats the only hope, if it isnt....it will rot like the others....

[Architect]

I have even been told by an "insider" that University (the actual mall structure) is in better shape than McCain. I am in McCain Mall and this place looks like swiss cheese when it rains. It has had zero updates in the last 20 years except they repaint the borders on the exterior doors and the rails outside.

By the way, the escalator has been down in here for a month now due to some child getting his foot caught in it. The escalator in JC Pennys was rebuilt a little while back and it took less than a month to complete. JC Pennys paid for all new parts. The escalator in the center of the mall needs all new parts but because Simon is trying to save money and penny pinch, the company working on that escalator told me that they say see no way that thing will be working before December. It might take well into Christmas Season. That will be a complete nightmare in this mall.

The best thing that could happen to McCain mall is it to be sold to another company, like Park Plaza was to CBL. Thats the only hope, if it isnt....it will rot like the others....