Face-lift planned for strip malls
Jonesboro Sun
Mark Randall
10/17/2007
JONESBORO — The new owners of two of the city’s busiest strip malls plan to give the properties a face-lift and could potentially add several new major retailers to the mix.
New York-based Stonemar Properties announced this week it has purchased the Crossroads Shopping Center at 2400 East Highland Drive and Bernard Court at 1843 East Highland Drive for $16 million from Belz-Burrow Development Group.
Chief investment officer Emmet Austin said Stonemar is in the process of upgrading both shopping centers and is already talking to potential retail tenants about situating in those shopping centers.
“There are quite a few we are talking to right now,” Austin said. “What we’re trying to do is get an ideal tenant mix, and we’re kind of analyzing our options right now. We definitely think there is potential.”
Both properties are 100 percent leased, but Austin said the company will re-evaluate each lease when it expires. Crossroads, across from Indian Mall, is anchored by OfficeMax, Pier 1 Imports and Mattress King. Bernard Court, next to the busy Wal-Mart Supercenter, is anchored by Hobby Lobby, Goody’s Family Clothing and Shoe Carnival.
Stonemar chief executive officer Jonathan Gould said the company first looked at the property about nine months ago and liked the location at a busy intersection and close proximity to The MALL AT TURTLE CREEK.
More than 55,000 cars pass the properties daily, and both are less than half a mile to The MALL AT TURTLE CREEK, which services a trade area of 350,000 shoppers in Northeast Arkansas, southeast Missouri and the Memphis suburbs.
Stonemar acquires strip malls, outlet and power centers in secondary markets around the country next to major regional malls in areas with vibrant local economies.
Gould said company executives didn’t know what to expect when they first visited Jonesboro to scout the market but left impressed after seeing all of the major corporations here and the amount of economic activity going on in Northeast Arkansas.
“We weren’t aware of Jonesboro,” Gould said. “But when we started digging into it, we were really excited about what was going on there in terms of the business community that is there and the amount of shopping that goes on. The entire retail corridor there is healthy and exciting.
“It’s got very strong car counts and a very healthy economy there. And we’re very excited about the prospects of the Indian Mall being redeveloped as well and the results of The MALL AT TURTLE CREEK. It’s very vibrant and has a lot of things going on there. We think that is going to add a lot of value to the other ends of the corridor there.”
Burrow, who developed The MALL AT TURTLE CREEK, entered into a contract in August to buy the 32-acre Indian Mall, which has been largely vacant since the opening of the new mall in May 2006, and plans to build an entirely new shopping center similar in style to the new mall called The Shoppes at CaraLand.
The sale is Stonemar’s first acquisition in Arkansas, but the company also has properties in Tennessee, Mississippi and Kentucky and has acquired more than 10.5 million square feet of shopping centers in 20 states worth more than $700 million over the last four years.
“This is the type of property we look at with stabilized assets and with high-quality tenants,” Austin added.
Gould said he is definitely impressed with the Arkansas market.
“We’d love to make more acquisitions,” Gould said. “We think Arkansas has a lot going for it. We’re looking forward to doing more business in Arkansas, and we’re excited about it.”
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