Tulsa's Eastland Mall's future uncertain after sale

Journal Record, The (Oklahoma City),  Jan 3, 2006  by John Dobberstein

• E-mail
• Print
• Link

Since Eastland Mall was sold last month, storefronts have been gradually emptying, and there's been a lot of shoulder shrugging among the tenants left.

There's been no news about the mall's future since Atlanta-based NSC New Markets Real Estate purchased the sprawling building from Simon Property Group in Indianapolis.

NSC acquired the mall on Dec. 16 for about $1.5 million - an amount believed to be far less than the appraised value for both the building and the property at 14002 E. 21st St.

Officials at Simon, which also owns Woodland Hills Mall in South Tulsa, and NSC could not be reached for comment on the sale Friday. Simon has pulled Eastland Mall off its Web site but did not release details of the transaction.

Store owners said Friday they've heard rumors the mall could be turned into an office complex, or re-developed into a Latino-themed mall to attract shoppers from nearby neighborhoods.

Until something happens, store owners are watching and waiting.

With help from civic leaders, the Tulsa Youth Ballet just moved into the mall in August. Laura Tyson, the ballet's founder and artistic director, said she isn't eager to move. Her group just finished a Christmas presentation and another performance for the Girls Scouts is coming Jan. 7.

We would love to stay here. Everyone is so nice, and there are wonderful people who are walking down here, Tyson said. It would be a real shame if they turned it into something other than a mall.

The mall's decline convinced the owners of Al's Formal Wear to move to Owasso, which just opened a major shopping center this fall at Highway 169 and 96th Street. Al's recorded poor sales over the holiday season, store officials said.

A couple of years ago, it was busier than it is now, said Al's store manager, Phyllis Burks. It's sad to have been here and watch it go down. Several people with stores said they liked it here.

Although some store owners do want to stay, they say they wouldn't think twice about leaving if there were any unsavory changes made.

I do good here, I want to stay here. But if they hike my rent or change the hours, I'm gone, said one store owner, who didn't want to be named.

What has happened to Eastland Mall isn't an anomaly.

Experts say trends are pointing away from enclosed, regional malls in favor of power shopping centers that offer better synergy with shoppers and allow drivers to park closer to their destination.

Oklahoma City and Tulsa, which have fewer enclosed malls than some other major markets, have seen their share of vacancies but haven't been as negatively affected by power centers, said Darren Currin, a vice president and research director for OKC Property Research in Oklahoma City.

Simon Property Group - the nation's largest manager of shopping malls - has been active in Oklahoma but hasn't been afraid to shed multiple properties here. Simon still owns Penn Square Mall in Oklahoma City, but a year ago it sold Heritage Park Mall in Midwest City.

They had been trying to sell the mall for a long time and finally just stopped signing leases and let the mall go, Currin said. Heritage has been sold twice since then, Currin said, with the most recent buyer announcing plans to renovate the building into a power center with a smaller enclosed shopping area.

Currin said Eastland Mall could be a prime candidate to be converted into a hybrid retail center, like South Roads Mall in Tulsa, or it could be turned into an office complex, similar to the conversion of Oklahoma City's Shepherd Mall, which was purchased by a Los Angeles investor for $48.5 million.

It's rare that a traditional mall can be saved, but that depends on the new owner's intentions, Currin said.

Less than two-dozen stores still occupy Eastland, with some planning to be gone by next week. Mervyn's is exiting Eastland and closing all its Tulsa stores. Montgomery Ward, Service Merchandise and J.C. Penney left Eastland years ago.

Some observers believe it's good that an out-of-state investor group purchased Eastland because the company may bring along a new concept that worked in another state.

It's going to be a challenge to keep it a traditional mall, said Bob Reppe, director of retail leasing for GBT Properties in Tulsa, which handles about 1 million square feet of retail space in the city. A lot of times, in a market this size, it can probably support two enclosed malls. We were three.

Reppe said he's received three or four calls from Eastland tenants, looking for space in case Eastland no longer supports their business.

They really don't know what's going on, Reppe said. You would think a new owner is going to change the concept. I just don't know if a traditional mall will make sense out there.

Copyright 2006 Dolan Media Newswires
Provided by ProQuest Information and Learning Company. All rights Reserved.