OFFICIAL: The Streets at Metcalf (Metcalf South redevelopment)

[trailerkid]

So for the sake of argument, let's say that Metcalf South is able to hit its revenue numbers by adding office tenants. If that's the case, is it possible that the owner doesn't mind losing more and more retail because as long as they're replaced by office tenants, the facility still turns a profit?

Another possibility is that the current mix makes just enough to pay the bills, and the owner is just waiting for an offer.

Comments?

I seriously doubt it is turning a profit. There are no stores or offices on like two floors. Most crap malls can bring in crap stores to fill up the vacancies, but Metcalf South has nothing except for that office on the top floor which used to be the Jones HQ. Sears also owns their own building I believe.

[Kaye]

KCOKEK and trailerkid---

A couple of years ago, there was an article in the K.C. Star where the city of O.P. was discussing what could done about Metcalf South or how it could possibly be redeveloped.

One of the city commissioners said that even though Metcalf South was sitting mostly vacant, it was not losing money. Dreiseszun completely owns the mall and does not owe anything on it. Although he does pay about $475,000 in taxes every year on the shopping center. So even though there are not many tenants, he still turns a profit.

The city remarked that the empty mall did not look good for Overland Park but Dreiseszun declined to sell or redevelop and, as a result, it was "just going to keep sitting there."

P.S.---SEARS does own their own building.

[Kaye]

Trailerkid--- General Growth, CBL and Macerich still purchase mall properties from other companies and remodel them. Sometimes, they're able to turn underperforming shopping centers into more profitable ones.

[nomadcowatbk]

KCOKEK and trailerkid---



One of the city commissioners said that even though Metcalf South was sitting mostly vacant, it was not losing money. Dreiseszun completely owns the mall and does not have to pay anything on it. Although he pays about $475,000 in taxes every year on the shopping center. So even though there are not many tenants, he still turns a profit.

how is it making a profit?

[KC0KEK]

Plus, even if Metcalf South isn't profitable, that doesn't necessarily mean that it's a bad investment. If the owner has other properties that are profitable, taking a loss on another one can be a positive from a tax perspective.

[Kaye]

Apparently the current leases in the mall generate just enough money to make a profit, even after the almost half a million dollars in property taxes. The Jones Store probably has the highest rent, followed the theaters, the five or six infill stores and office space.

[nomadcowatbk]

http://www.deadmalls.com

[KC0KEK]

I e-mailed them months ago to offer info on MS, Indian Springs, Mission Center, Blue Ridge and Bannister, but they never responded.

[shinatoo]

Mission Center. Its not dead at all. Small, but not dead.

[KC0KEK]

Fair enough, although it seems pretty dead compared to just a few years ago. I live a few blocks away, so I often shop there, but apparently I'm the exception.

[GuyInLenexa]

I was shopping at The Jones Store in Metcalf South last night, they have closed the part of the store where The Home Store was (outside the main store) there is no more furniture, houswares has been moved into the main part of the store.
Park University has a large part of the upper floors leased.
I think that it woulc be a good place for an educational center, JCCC, Park Univerisity, Baker, maybe others could put their campuses in one place.
The traffic of people in both stores seem to be declining to me.
I have a feeling that it will not remain a retail center for very long. Especially with Sears and TJS/May Co. in merger.

[KC0KEK]

I was shopping at The Jones Store in Metcalf South last night, they have closed the part of the store where The Home Store was (outside the main store) there is no more furniture, houswares has been moved into the main part of the store.

I thought that part closed in the late '90s. I bought a couch there in '98, and I think it was on sale because they were trying to clear out that department so they could close it.

[DaveKCMO]

http://www.bizjournals.com/kansascity/s ... ily29.html

The owners of Metro North and Metcalf South shopping centers have hired a Denver-area company to redevelop the shopping centers.

Interests tied to Sherman Driesuszun and the family of the late Frank Morgan, the malls' owners, chose Alberta Development Partners, based in Greenwood Village, Colo., to redevelop the shopping centers. Walton St. Capital of Chicago is Alberta's capital partner in both ventures.

Metcalf South will be renamed The Streets at Metcalf and be redeveloped as a 1.1 million-square-foot mixed-used project that will include upscale boutiques, national and local retail shops, an entertainment complex, office and residential space, and a hotel, the developer said in a release Thursday.

Metro North will be renamed The Streets at Barry Towne and be redeveloped into 2.1 million square feet of retail, residential, restaurant and entertainment space, including a theater, a commons area for community events and park-like areas.

Alberta Development Partners has chosen different contractors for each project. The Weitz Co. is working on Metro North, and Walton Construction Co. LLC landed the Metcalf South redevelopment.

A principal with Alberta Development Partners couldn't immediately be reached for comment.

Costs of the projects weren't disclosed. The developer didn't say whether it will seek public incentives for the redevelopments.

The company said in the release that it and Callison Architecture and Communication Arts have started work on the concepts and designs of both projects. Alberta said it expects to submit conceptual plans for both projects in early 2007.

[jimb]

I looked at the website for the similar development they are doing in Colorado (http://www.newsouthglenn.com/).  It looks like they tore down the mall, leaving the anchor stores intact.  The rest of the development is being build around the remaining structures.  It's hard (for me, at least) to tell too much about how its going to look, but it appears promising.

Metcalf South seems to match up with this development - the two remaining anchor stores are busy, but the balance of the place is desolate.  I'm looking forward to seeing the conceptual drawings when they come out in a few months.  95th and Metcalf is still too prime a location to have that (mostly) empty hulk lurking there and bringing the whole area down.

So long as they don't build a big-ass Wal-Mart on it like out at Blue Ridge.

[ComandanteCero]

here are some renderings of what that Colorado project will look like:

[Highlander]

here are some renderings of what that Colorado project will look like:

Jeez, looks like a suburban version of the Power and Light District.  Surely nothing of this scale is proposed for Metcalfe South or Metro North?

[KC0KEK]

Looks similar to the project near Leawood Town Center and the Sprint campus. How many of those can this part of the market support?

[justin8216]

I hope if they tear down Metcalf South Shopping Center, that they leave the 3 story fountain intact where it is. Hopefully they can demolish around the fountain, or remove it and then re-install it after demolition.

[DanCa]

This sounds great for Metcalf South.  This has alredy been done to one mall in Denver (Villa Italia in Lakewood) which was scraped to the ground and an urban, mixed use project with shopping/offices/condos/apts. put in its place.  It's called Belmar and probably the best example of new urbanism replacing a mall that I've seen.  This seems to be the new trend and I've seen it done in California too.  Sometimes they tear down the entire mall and sometimes they reuse parts of it.  We have one of these types of shopping areas opening next week here at Stapleton as well, anchored by Macy's and a movie theater. 

[anniewarbucks]

Most of Metcalf souths problem is that this mall is filled with mold. This mall was flooded back in 93 and never has recovered. The only reason that Sears and Macy's are still there is that the corporate disaster restoration specialists know how to clean these buildings so that mold will not grow. After the fire two years ago here in our Sears store we had Servicemaster come in and clean the affected areas (the electronics stockroom, hub and the entire lower level. after they were finished you could not tell that we had a fire.
  I think that instead of razing the area between Sears and Macys they should go in and gut the entire cavern and clean out the mold and then rebuild the individual suites for new tennants. It would make a lot more sense. The fountain would stay intact and the mall would have new life breathed into it.