Eastland Mall Redevelopment

[DigitalSky]

The only thing that I think would work at the mall would be a complete reformatting of it... IE make it an "international themed" mall or something

[MZT]

Who knows, the Sears might possibly stick it out at Eastland, if there is no serious competition there from other anchors.

[StevenRocks]

That Dillard's clearance center always seems to have a decent number of people in it, and the deals are amazing. Although the store clerks have insisted that the store will be around for the long haul, I'd guess a moderate level of sales activity- at severely discounted prices- isn't enough to keep a store going, though, as those clearance centers seem to last generally only a year or two?

The Dillard's at the simlilarly distressed Carolina Circle Mall lasted about five years as a clearance center. Eastland's foot traffic is much better, so it could be okay at least in the short term.

Who knows, the Sears might possibly stick it out at Eastland, if there is no serious competition there from other anchors.

Sears is staying unless the chain goes belly-up. They're doing okay business, and there's nowhere to move to.

[xyhamiltonboi]

Confirmed National Brands closing include the following:

BELK

THE LIMITED

EXPRESS

EXPRESS MEN

BATH & BODY WORKS

VICTORIA'S SECRET

CHICK-FIL-A

Edited January 14, 2007 by xyhamiltonboi

[A2]

I went by today to "explore" and all I can say is that the whole area (not just the mall) is dying. More than just the mall, things like gas stations are boarded up along Sharon Amity, along with other noteables including Blockbuster.

There is also an endless array of signage that pointed out "Space for Lease" at many of the strip centers within a mile radius of Eastland. (I did some heavy duty exploring)

This area is in SERIOUS trouble. My fiance, originally from LA, moved with her family to the East side of Charlotte some ten years ago. She has since moved out, but needless to say, she was also shocked on our journey. She kept pointing out stores that were gone, and just kept remarking on the utter decay that the area seems to have undergone since her move out just two short years ago.

It is really sad considering the ethnic diversity that the area boasts. One would think that more of these shops along Ablemarle, Eastland, and Sharon Amity could stay open with storefronts tailoring to the demographics that would support them. The only bright spot of development, was around the recently opened Latin Food Bazzare that seems quite unique. However, they could do without the Palms at the entrance. (I guess we really are in a new Agricultural Zone, afterall. )

A2

Edited January 15, 2007 by A2

[MZT]

It appears, sadly, that those who forecast an exodus of retailers after Jan 1 were correct.

Does Eastland lose money right now? Or is Glimcher simply looking for better returns elsewhere?

BTW, I agree that east side Charlotte is beginning to resemble the decaying outskirts of LA county. The area is suffering. I owned a house out there (for about 9 months) which I sold for $95000 in mid 2003. Here we are, 3.5 years later and homes in that neighborhood are going for about $110,000. That's 4.2% a year... barely keeping pace with inflation.... simultaneously in a city with trendy areas like PM about 6 miles away that have almost doubled in value.

I also think the dilapidation of east side is spreading south along Independence. The wedge all the way down to the intersection of WT Harris and Independence is getting sketchy.

Edited January 15, 2007 by MZT

[monsoon]

It is shocking to see the decline. I went over that way a few weeks ago, first time in 5-6 years, and I was shocked after the change. it is quite a change from the late 70s when this area was considered the Southpark of the time where everyone wanted to live.

I am wondering that because this area was built exclusively for the middle class driving in automobiles, that it does not lend itself well to lower income people, many of which who don't have cars or can't afford to drive them everywhere. As a result the retail there, like Eastland, languishes because people simply can't get to the places easily and instead of being converted to mom & pop shops that serve the community it dies instead. It's an interesting idea to explore.

[mallguy]

This whole area is unsettling; in a country in which poor people are not seeing the rising levels of wealth that upper-income people are, and to which plenty of poor people are moving from other countries, they have to live somewhere, and they live in east Charlotte. Sad that east Charlotte gives a first-hand view of the effects of bad social policies. And if I were a property owner in that part of town, I'd be steamed to see my property go to pot because of those policies.

[mallguy]

Eastland has 3 new tenants coming soon:

* Red Carpet Cinemas (redcarpetcinemas.com)

* Man Alive

* M&M Soul Food (or the like) coming to the former Chick-fil-A spot.

The mall was packed today, with a lot of foot traffic, and even the flea market in the former Hannaford had a lot of cars in front.

Conversely, large swaths of the west end of the mall are now covered in wallboard since the departure of the Limited-owned stores, and Belk has only seven days left and is nearly completely picked over. That wing is pretty dead.

It's a sad sight. Even the Lone Star steak place on Albemarle and Sharon Amity near the mall has shut down.

[DigitalSky]

http://www.charlotte.com/mld/charlotte/business/16648986.htm

An update on the status of Eastland Mall. The article goes on to state that the surviving stores are the ones that cater to the urban/hip-hop trend and the higher end retailers have trouble surviving. Additionally, they talk about the mall's evoultion and metion the movie theater moving in as mallguy said. It will be awesomely interesting to see what becomes of the Belk space though. One person was quoted as saying what mall doesn't have a Belk or J.C. Penney, saying with these national staples leaving it just adds to the deterioration of the mall.

[mallguy]

Great article with great quotes! Looks as if the mall's fate is sealed, with rents significantly reduced in the past few years; there go Glimcher's profits.

[SmellyCat]

there go Glimcher's profits.

he who hesitates....

[StevenRocks]

I think the mall is offically in a state of decline.

[mallguy]

I think the mall is offically in a state of decline.

You're right. I drove by the mall last night and even the light bulbs illuminating the sun logo in the back, at the Lenscrafters entrance, had burned out.

I think one factor in Eastland's decline has been to be surrounded by cheap apartment complexes. Poor thing.

[monsoon]

I think one factor in Eastland's decline has been to be surrounded by cheap apartment complexes. Poor thing.

When they were built in the 1970s these apartment complexes were considered high end places to live on the same lines of living in a pricy uptown apartment today. It just goes to show you that a lot can happen to a city in 30 years.

[mallguy]

Belk is now gone. Same for all of the Limited stores, covered in drywall that hasn't even been fully painted even though it was put up a week ago- just plain drywall with a few paint splotches on it. Two stores next to Sears have even shut down, now also partially covered in drywall. The Dillard's even has a much sparser merchandise selection than before- a few racks in the men's "department" have just a handful of $2.99 shirts on them- although I see no signs of its imminent demise. The abandoned gas station in front of the mall has deteriorated, with part of its roof falling off.

The mall had better quickly attract some urban stores or it will surely be dead. Odd, as the mall still was pretty crowded today, at least in the interior corridor. Eastland used to be a run-down version of Carolina Place. Now it's a fancy version of Freedom Mall.

Edited February 12, 2007 by mallguy

[monsoon]

I think it is quickly headed the same direction as Freedom Mall. At one time I used to like shopping at Freedom mall and it had a fairly unique setup for Charlotte malls. However in the early 80s it started to attract the wrong elements and I think by 1990, it was as Eastland is today. It's deathblow was when Target, originally Richway, pulled out. It was all downhill from there. Eastland has lost Belk, JC Penny and Dillards is just a token store. This leaves Sears. If and when they close, that will be the end of that mall.

[mallguy]

The Eastland Sears was pretty slow today, and since it's at the back of the mall it's not particularly visible from the road, despite the '70s Sears sign at the top of the mall. Nonetheless, it seems pretty rare for a Sears in a dying mall to close.

I'll go ahead and guesstimate that Eastland will be abandoned in 5 years or less or sold to a mall slumlord for chump change. The mall has no good hope of redevelopment like two other run-down Charlotte-area malls, Gaston Mall (in a good retail corridor) and Freedom Mall (with government office space coming and a government owner) so I think its best prospect is to linger around in a comatose state for a few years and then be condemned as a slum that is not up to building codes.

Let me also get on my (Republican) soapbox: the demise of Eastland is a clear signal that we MUST fix east Charlotte's problems. For a large area to have overall incomes declining over the past decade is alarming and immoral and is going to cause problems for Charlotte and for the US as a whole, as this pattern is repeated in a lot of other cities.

Edited February 12, 2007 by mallguy

[StevenRocks]

Let me also get on my (Republican) soapbox: the demise of Eastland is a clear signal that we MUST fix east Charlotte's problems. For a large area to have overall incomes declining over the past decade is alarming and immoral and is going to cause problems for Charlotte and for the US as a whole, as this pattern is repeated in a lot of other cities.

It's not as much a partisan issue as it is a human and resource issue. There are thousands of underutilized acres and thousands more underutilized people living in East Charlotte that aren't going to be able to simply pull themselves up by their bootstraps. The area is wasting away and its inhabitants aren't keeping up with the rest of the city financially. It's a waste and a shame.

As these stores close and Eastland fails, income falls and the neighborhood goes into either further decline, with the only increases in visibility coming when somebody gets shot. The only new thing going in is a transit center sitting in a dead field of asphalt.

Some kind of effort, either public, private, or a combination of the two, has to make this area viable again, or at least stop the decline. ifg nothing happens, Eastlad's woes spread to Northlake and beyond.

[xyhamiltonboi]

Eastland may be in a state of decline based on anchor stores, but there's one thing for sure. Eastland Mall is owned by a some what acredited REIT. I've looked over their portfolio and have seen some malls that fit the same level that Eastland fits. The economy calls anything urban dying or mom and pop shop. Eastland actually has more chain stores that are healthy than the media suggests.

New York & Company, a national retailer, was a part of Limited Brands at one point. Despite the spinoff the new owners only took over the existing lease. With this being said any brands signed at 1997 that were a part of Limited Brands leases came due for renewal at 2007. If the mall was sooooooooo unhealthy New York and Company should have also closed being on the same lease time table.

Man Alive, a national retailer, opens this year and is a division of Finish Line. I'm pretty sure we have great things to expect if Finish Line a national retailer has negociated a lease on Man Alive. And just as we look for things that would cause us to raise an eyebrow, I'm pretty sure they have seen Dillard's and Belk in the state they were in and must know what is to come beyond that before they signed.

[Version70-8]

Eastland may be in a state of decline based on anchor stores, but there's one thing for sure. Eastland Mall is owned by a some what acredited REIT. I've looked over their portfolio and have seen some malls that fit the same level that Eastland fits. The economy calls anything urban dying or mom and pop shop. Eastland actually has more chain stores that are healthy than the media suggests.

New York & Company, a national retailer, was a part of Limited Brands at one point. Despite the spinoff the new owners only took over the existing lease. With this being said any brands signed at 1997 that were a part of Limited Brands leases came due for renewal at 2007. If the mall was sooooooooo unhealthy New York and Company should have also closed being on the same lease time table.

Man Alive, a national retailer, opens this year and is a division of Finish Line. I'm pretty sure we have great things to expect if Finish Line a national retailer has negociated a lease on Man Alive. And just as we look for things that would cause us to raise an eyebrow, I'm pretty sure they have seen Dillard's and Belk in the state they were in and must know what is to come beyond that before they signed.

That's not necessarily true. When Limited Brands sold NY&Co. the new owners obviously would assume the lease like you said, so therefore they would be the ones to decide if/when they might want to close the store. It is possible that they have already renegotiated a new 10-year lease (which is highly unlikely), or a smaller one, or they could have even chosen to sign up year-to-year and take it one at a time, which can be done after the initial lease terms have expired albeit it is costly.

[monsoon]

Eastland may be in a state of decline based on anchor stores, but there's one thing for sure. Eastland Mall is owned by a some what acredited REIT. I've looked over their portfolio and have seen some malls that fit the same level that Eastland fits. The economy calls anything urban dying or mom and pop shop. Eastland actually has more chain stores that are healthy than the media suggests.

Somebody must own it and I don't think the owner's name has any bearing on the current state of the mall. In fact, given that it is a investment group, they are more likely to cut and run instead of investing in the place. (One of the real problems in East Charlotte) It appears the suggestions the mall fortunes would be reversed by the construction of a city bus station (they call them transit centers now) in the parking are not coming true. No surprise. The bigger barometer of health of course are the closings of all of it's anchors stores. If the mall was "healthy" Belk would not be leaving the place.

I recommend that you get in the car and drive up here from Columbia, and have a look at the place. They tell a completely different story than investment spreadsheets.

A mall with closed anchor stores, is a mall that is going to dead mall status.

[mallguy]

Eastland makes Columbia Place mall look like a thriving luxury mall.

Re: NY&Co. and Man Alive- those are national chain stores, true, and I'd think that at least somebody thinks that Eastland has a bright enough future as an urban mall to make the investment in opening a new store or renewing a current lease. Given the mall's high foot traffic, I do see that Eastland could remain a retail center with urban stores for a long time to come.

However, the question is whether or not the rents that can be charged are enough for an owner to make enough profit to continue to invest in the mall's upkeep. I read a while back that Glimcher was losing money on the mall, which it called a "fixer-upper" in a press release, so I just don't see how the mall can remain open for too much longer, with its deteriorating physical condition; why would anybody keep dumping money into it to keep it up if the rate of return on the investment would be negative?

I know of just a few malls that have urban type stores and one anchor remaining- Freedom Mall, Century Plaza in Birmingham and Raleigh Springs Mall in Tennessee. I'd say that none of them have bright futures, although they are indications that half-dead malls can limp along for a long while. But then the profit/loss question comes up again.

[suburban george3]

I'm not sure of Eastland's situation, but it isn't unheard of for lease agreements for non-anchor stores to include clauses that will reduce rent and sometimes eliminate rent all-together if the owner/operator can't keep/acquire major anchors in the center.

[xyhamiltonboi]

Mall guy couldn't have said it better.

I've been to Eastland since Limited Brands have departed and I know that Belk is departing. What I'm saying is a sign of a truely dying mall is no leases are being renewed and stores are leaving in dozens. Eastland still has time to turn things around. There are enough stores in the US to fill every vacancy in that mall. When doing this, the foot traffic will increase and so will the rents when the stores are surviving. Eastland is morphing into a mall that will better serve it's surroundings. It may not be on the map of Glimcher, but someone will find love in what they can do to Eastland. I've seen worst deaths in my lifetime involving malls and I truely think Eastland can live and if done right survive for 10 more years. We're not talking about former Northland Mall in Ohio, South Square Mall in Durham, or even Westland Mall in Ohio.