Independence Center
Posted: Wed Jun 28, 2017 9:22 am
http://www.kansascity.com/news/business ... 20274.html Simon is going to default on the malls loan. Looks like Oak Park will be the last true mall in the metro to fall after all.
net worth <> cash on hand.brewcrew1000 wrote:I don't think the mall will go away, they will probably just try to restructure the loan or something. It kills me though, Herbert Simon, net worth 2.7 billion USD why can't he just pay it with his own cash?
No, it will just fade away slowly like Metro North. I don't see it tanking fast like Bannister and Metcalf South, but getting dropped by Simon hasn't worked out too well for malls in Wichita, Aurora, Topeka, and Albuquerque, and Simon spun those off to a different company rather than default on their loan.brewcrew1000 wrote:I don't think the mall will go away, they will probably just try to restructure the loan or something. It kills me though, Herbert Simon, net worth 2.7 billion USD why can't he just pay it with his own cash?
This will be the malls fourth owner and there are quite a few less companies out there these days. The companies that the mall no longer exists, the company that built Oak Park-Leavenworth Plaza-Mission Center no longer deals in malls, MD is.... Look at Metro North, Metcalf South and Google West Minster Mall, Southwyck Mall, and Buckingham Square to get into that mess, and GGP had its chance to pick up Oak Park and Independence Center in the last 20 years and didn't. CBL, the owner of Oak Park Mall, might buy them, but security will take big cuts. If anyone besides GGP or CBL buys them, the mall will continue to slowly sink. I'm sure people though that no one would let Metro North get that bad, especially since it had access to better demographics than Independence Center.aknowledgeableperson wrote:Some other entity will buy it and rejuvenate it to compete with all of the surrounding retail around it. And it will probably succeed.
Ah, but that's a bad time to go. Temp tenants always show up for the Holiday. Stuff like Go Games Books and Toys and Toys R Us Express come in and are gone by February. Ward Parkway Center isn't really a mall, but is a good example of how to save one. The interior is still dead (and could be worse if Rue 21 and Claire's liquidate before 2018 as expected), but it's a good example of how to reconfigure a building. Ward Parkway was killed by changing demographics to the east of the mall, Mission Center Mall, Metcalf South, and then Town Center Plaza put the nail in the coffin for it and Metcalf South in the 90's. Oak Park Mall and Zona Rosa have better immediate demographics to pull from, and their tenant roster shows that.aknowledgeableperson wrote:New owners could rejuvenate the mall much like was done with Ward Parkway. True, there isn't that much close-by competition to Ward Parkway but new owners could possibly pick it up on the cheap and have funds left over for a make-over.
Was at the IC last Christmas season and I don't remember seeing an unusual amount of vacant storefronts.
I'm hearing that it was foreclosed on and the bank is now re-negotiating leases, which is why so many stores are beginning to flock (Aldo, Things Remembered). The "A SIMON MALL" logo found around all the Independence Center signage was removed as well.nomadcowatbk wrote:who owns the mall now?
http://www.kmbc.com/article/future-of-i ... e/15949821
what bank?jbean3535 wrote:I'm hearing that it was foreclosed on and the bank is now re-negotiating leases, which is why so many stores are beginning to flock (Aldo, Things Remembered). The "A SIMON MALL" logo found around all the Independence Center signage was removed as well.nomadcowatbk wrote:who owns the mall now?
http://www.kmbc.com/article/future-of-i ... e/15949821
Whoever the lender was that allowed Simon to fall so far behind on payments.nomadcowatbk wrote:what bank?jbean3535 wrote:I'm hearing that it was foreclosed on and the bank is now re-negotiating leases, which is why so many stores are beginning to flock (Aldo, Things Remembered). The "A SIMON MALL" logo found around all the Independence Center signage was removed as well.nomadcowatbk wrote:who owns the mall now?
http://www.kmbc.com/article/future-of-i ... e/15949821
jbean3535 wrote:I'm hearing that it was foreclosed on and the bank is now re-negotiating leases, which is why so many stores are beginning to flock (Aldo, Things Remembered). The "A SIMON MALL" logo found around all the Independence Center signage was removed as well.nomadcowatbk wrote:who owns the mall now?
http://www.kmbc.com/article/future-of-i ... e/15949821
Oak Park Mall?empires228 wrote:jbean3535 wrote:I'm hearing that it was foreclosed on and the bank is now re-negotiating leases, which is why so many stores are beginning to flock (Aldo, Things Remembered). The "A SIMON MALL" logo found around all the Independence Center signage was removed as well.nomadcowatbk wrote:who owns the mall now?
http://www.kmbc.com/article/future-of-i ... e/15949821
So, it sounds like the metro is going to be down to Crown Center, Mill Walk Mall, and The Landing for indoor malls in the near future...
Didn't this mall recently add two major tenants (Dicks and H&M)? And isn't is nearly fully leased? I mean typically malls see a several years of vacancy issues and what not before they start to fail. I think the press needs to be careful or they could start to scare people away and actually cause a problem that doesn't really exist today. It sounds like Simon just doesn't want to pay the debt service for this mall anymore and it has little to do with how the mall is actually doing.LCDSI wrote:Here's an article in the KC Star about the foreclosure. Not a good sign. It seems like another enclosed mall in KC might bite the dust.
http://www.kansascity.com/news/business ... 43414.html
I hope that's the case. I would think a market our size would be able to sustain two enclosed malls especially since they're on different sides of the metro.GRID wrote:Didn't this mall recently add two major tenants (Dicks and H&M)? And isn't is nearly fully leased? I mean typically malls see a several years of vacancy issues and what not before they start to fail. I think the press needs to be careful or they could start to scare people away and actually cause a problem that doesn't really exist today. It sounds like Simon just doesn't want to pay the debt service for this mall anymore and it has little to do with how the mall is actually doing.LCDSI wrote:Here's an article in the KC Star about the foreclosure. Not a good sign. It seems like another enclosed mall in KC might bite the dust.
http://www.kansascity.com/news/business ... 43414.html
The problem with KC is the metro retail market is so overbuilt. I mean it's crazy how much retail space there is in KC and nearly all of it is subsidized, especially the newer stuff in affluent parts of JoCo. It's bizarre.LCDSI wrote:I hope that's the case. I would think a market our size would be able to sustain two enclosed malls especially since they're on different sides of the metro.GRID wrote:Didn't this mall recently add two major tenants (Dicks and H&M)? And isn't is nearly fully leased? I mean typically malls see a several years of vacancy issues and what not before they start to fail. I think the press needs to be careful or they could start to scare people away and actually cause a problem that doesn't really exist today. It sounds like Simon just doesn't want to pay the debt service for this mall anymore and it has little to do with how the mall is actually doing.LCDSI wrote:Here's an article in the KC Star about the foreclosure. Not a good sign. It seems like another enclosed mall in KC might bite the dust.
http://www.kansascity.com/news/business ... 43414.html