Archive for August 10th, 2007

CBL, Westfield Ink Pact

by David Bodamer August 10th, 2007

In a fascinating deal, CBL & Associates Properties and Westfield Group–two of the largest owners of regional malls in the U.S.–have formed an interesting partnership called CW Joint Venture.

Westfield is contributing three St. Louis-area properties to the joint venture (and selling a fourth, Chesterfield Mall, outright to CBL). CBL also operates St. Clair Square, which it is contributing to the joint venture, giving the CW entity control of five malls in the region. For its part, CBL is adding five other malls beyond St. Clair and three associated properties to the joint venture.

All told, the CBL/Westfield arrangement is worth just over $1 billion.

“The combination of these four malls and our existing St. Clair Square provides us with a dominant platform in the St. Louis market to maximize leasing results, management synergies and redevelopment opportunities,” CBL President Stephen Lebovitz said in a press release.

Doug Harms, Des Peres city administrator, said Thursday evening, “We were aware they (Westfield) were looking to reposition their portfolio and that included disposing of most, if not all, of their St. Louis properties.” The city learned about a week ago that Westfield was examining its options.

Harms said he was sorry to hear of the sale announcement. “We’ve had a good relationship with them, and we’re looking forward to working with the new owners.”

In another deal, Westfield is buying two malls in Florida–former Mills Corp. assets Broward and Westland Malls–for $400 million from Simon Property Group and Farallon Partners.

You can see CBL’s press release here and Westfield’s here.

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The Fight to Save River Oaks

by David Bodamer August 10th, 2007

It’s not unusual for developers to clash with preservationists when trying to get projects completed.

But in the case of River Oaks Shopping Center in Houston, the protest this time has been to save the 68-year-old center. Here’s just one example of a number of posts on blogs looking to preserve a portion of the center and the nearby Alabama Theater, an example of Art Deco design. There’s also an online petition with 25,701 signatures.

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(Photo from Big Pink Cookie).
According to owner Weingarten Realty’s site, the property is being redeveloped to include a new Barnes & Noble and 23,000 square feet of new restaurant and retail space.

Some Houston blogs are even giving frequent updates of the property’s demolition.

Earlier this week, the city council bestowed landmark status on the shopping center in an attempt to stop its redevelopment.

Wednesday’s designation means that Weingarten faces a 90-day waiting period if it wishes to tear down the River Oaks Theater or the Alabama Theater or Shopping Center.

“It doesn’t keep these landmarks from being demolished,” said Sarah Gish, founder of Save Our Landmarks, a Houston group. But the delay creates time for dialogue between preservationists and property owners. Gish thinks Weingarten should try to build around the Art Deco buildings.

“There’s got to be some common ground,” Gish said. “The River Oaks Theater is the only historic movie theater still operating in Houston.”

Weingarten declined to answer specific questions from the Chronicle, but released a statement confirming it had already begun site preparations on the corner of Shepherd and West Gray. The $15 million redevelopment will include a four-story parking garage, stores, and restaurants.

“Weingarten has owned River Oaks Shopping Center for 35 years and has consistently invested in improving the aesthetic appeal of the center’s architecture while upgrading and modernizing infrastructure to meet our retailer’s needs,” the statement said.

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