Ward Parkway Center
At the time of acquisition, the 880,000 square foot (s.f.) dormant regional mall had over 250,000 s.f. of vacancy. The property had an overall occupancy level of nearly 60% when purchased with a NOI of approximately $1.6MM.
“Best Shopping Center -Ward Parkway Center- Visitors to Ward Parkway Center in the early 1960s marveled at the gaslit streets inside Kansas City's first enclosed shopping mall. Almost 50 years later, Ward Parkway remains an important part of the community, a place to shop for running shoes (Garry Gribble's), meet for coffee (Starbucks), see a movie (AMC) and stock up on toilet paper and 7UP (Target). Dallas-based Todd Interests deserves the bulk of the credit for the mall's staying power. The company bought the aging mall in 1999 and turned it into a hybrid.”
Originally signed in 1955, the Montgomery Ward lease had less than 9 years remaining. The 131,000 s.f. Montgomery Ward was on the mall’s only pad site and one of the remaining anchors. The property also had a “dark” two story J.C. Penney building, a poorly configured 22 screen AMC Cinema with two box offices, and a 200,000 s.f. Dillard’s department store on a long-term ground lease.
Todd Interests served as the general partner and the guarantor on over $35MM of debt provided by Guaranty Federal Savings Bank. Under Todd’s direction, third party management, leasing, and development professionals were hired to implement Todd Interests’ redevelopment plan that included aggressive modifications.
Todd Interests immediately set out to de-mall 85,000 s.f. of gross leasable area (GLA) from the mall. This opened up previously interior access only space to new drive-up retail, and generated leases with Starbucks Coffee, Catherine’s Fashions, and Baja Fresh Mexican Grill. The team then leased the two story former J.C. Penney space to Dick’s Sporting Goods, 24-Hour Total Fitness, T.J. Maxx ,and Pier One Imports. Next, the 22 screen AMC Theatre lease was restructured with a new lease for 14 screens, recapturing 20,000 s.f. of desirable space and a substantial cash payment to the partnership.
The Montgomery Ward lease was replaced with a new Target ground lease and recaptured the one-acre pad site. Target created an additional direct entry into the mall adding value to the entire shopping center.
Upon completion of the re-development, Todd Interests hired CB Richard Ellis of Chicago to market the property. The newly created lifestyle center was acquired by Developers Diversified Realty in partnership with Coventry Real Estate Partners. At the time of disposition, the property’s overall occupancy was approaching 90%.
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