Eastland Mall to close

[Jack]

I heard from management at Woodland Hills that Eastland Mall will most likely be closing within the next 5 years. This is a mall that never really got off the ground. In fact, Simon started building it, and stopped halfway in the middle, because they weren't sure if they were going to complete it. In the end, Tulsa grew south and east instead of straight east. It was unfortunate for Eastland.

[swake]

within 5 Years? Anyone wanna bet they don't make it 5 months?

[Patrick]

I had actually heard something similar to this from the manager at Penn Square. I'm thinking he said they were going to close it and sell it or level it. Can't remember which.

[swake]

Word is that Simon has sold Eastland. Someone said Dillard's may be the buyer, don't know if that is true. I have no idea what that means.

[Jack]

Weird that Dillards would buy the mall. Think they'll turn the mall into a huge Dillards?

[swake]

An Atlanta Real Estate company has bought the mall. No word on plans but the Tulsa World reports the mall is down to 20 tenants and five are having going out of business sales.

Bye Bye Eastland!

[BricktownGuy]

Can someone please post the article from the Tulsa World here?????

[In_Tulsa]

This could be good news for Eastland mall or it could be bad news anyway it's news. It said in the Tulsa World that they paid 1.5 million for the mall and the property was assessed at $4 million by the county.

[swake]

Eastland Mall sold
By ROBERT EVATT World Staff Writer
12/28/2005

Future unclear after $1.5 million deal
At a time when many shoppers are looking for holiday sales within shopping malls, the long-struggling Eastland Mall was itself sold for $1.5 million.
Simon Property Group Inc., an Indianapolis company that owns malls and shopping centers across the nation, sold the mall at 14002 E. 21st St. to NSC New Markets Real Estate of Atlanta, Tulsa County records show. The property was assessed at $4 million by the county.
Officials from neither entity were available for comment Tuesday.
Within Eastland Mall Tuesday, where foot traffic was almost nonexistent despite after-Christmas sales, proprietors of the few remaining stores wondered how the mall will be affected by the sale.
Wanda Messer, an employee of Pro Image, said Simon distributed a letter that announced the sale of the facility and thanked the tenants for their patronage, but offered no other details.
"There was no information on it whatsoever," she said.
Most store owners weren't even certain who their new landlord will be.
"We have no idea what's going on," said Dennis Keflin, owner of Yesterday and Today's Collectibles. "I don't even know who the hell to send my lease check to."
An informal count shows the once-thriving mall now has just 20 retail tenants remaining, just one-fifth of the 100 stores and restaurants in Eastland at its peak in the 1990s. Space after space is dark and shuttered, and the food court is down to just one restaurant -- Combo King Chinese Food Express.
Of the 20 stores, five -- Mervyn's, Sears Portrait Studio, ACT Warehouse, Garden Escapes and Al's Formal Wear -- have signs announcing they will close by the end of January.
Kyle Sanchez, owner of ACT Warehouse, said poor sales were the reason he's decided to close up shop. His sales for this Christmas season declined 30 percent over last year.
He said he was frustrated at the lack of advertising and marketing by Simon, which also owns Woodland Hills Mall.
"Simon had one good mall and one bad mall, and we're the bad mall," Sanchez said.
Messer said sales at Pro Image were "horrible" this Christmas and declined 60 percent each year for the last two years.
She said the store would have closed long ago if Simon had allowed it to buy out its lease, which runs through 2007.
"We can only hope the new owners will let us terminate our lease," Messer said.
The sale did not include the spaces occupied by Dillard's and Mervyn's, which are owned by their tenants. Employees at Dillard's referred questions to officials at their corporate headquarters in Little Rock, who did not return phone calls at press time.
Mervyn's LLC had already announced it will close all three Tulsa locations, including those at Tulsa Promenade and the Village at Woodland Hills, by the end of January.
Eastland has been steadily declining since at least 2001, when J.C. Penney closed its location there. Other national retailers such as The Gap, Old Navy, Radio Shack and Famous Footwear soon followed.
Now, the majority of retail tenants are local shops operating without a franchise, or nonretail organizations such as the Tulsa Cerebral Palsey Association, Traditional Korean Martial Arts and the Worldwide Church of God.
Many retailers expressed pessimism about the mall's future.
Even Keflin, who said he's happy operating his store within Eastland, said he may have to move if the new owner raises lease rates.
"I'm just not sure what to do," he said.
Eastland Mall was conceived in 1969, but construction delays and financial issues kept the project from opening for 17 years.
Simon Properties bought the unfinished mall in 1979, and then spent several years signing anchor tenants before it completed construction.

[BricktownGuy]

http://www.ktul.com/news/stories/0406/317470.html

[Patrick]

I guess they talked to the folks over at Shepherd Mall? lol!

[BricktownGuy]

Someone from Tulsa or anyone can you give an update as to what is happening at Eastland Mall.

Haywood-Whichard (NSC New Markets Real Estate LLC,) bought the mall from Simon sometime back.

Whichard has been described many Web sites and in newspapers as a real estate bottom feeder and the grim reaper of malls.

River Roads Mall in Jennings, Mo., was purchased for just under $5 million in 1999 by Whichard but was condemned and slated for demolition in 2005.

In Fort Wayne, Ind., Whichard bought the Southtown Mall in 1998 for $3.2 million. The city of Fort Wayne took possession of the mall through eminent domain and demolished it.

Tulsa developer Ed Kallay was rumored to have interest in the mall and to buy it from Haywood-Whichard . (See above link to KTUL)

It has been rumored that there was a request to get a zoning change from Commercial Shopping District to Industrial Light.
http://roemerman.blogspot.com/2006/0...ng-change.html

I have also read that Kallay is not the owner but is teaming up with Haywood-Whichard.

However, later is rumored that the zoning change request has been withdrawn. http://roemerman.blogspot.com/2006/06/withdrawn.html

Whats really going on??

[Swake2]

Kallay bought the mall, and then has sold it again since to a local group that he heads.

The mall is being cleaned up even now and is going to be partially converted to office space. It will mixed use office/retail from reports.

http://www.tulsaworld.com/NewsStory...._E1_Eastl39031

Eastland Mall sold - again
By ROBERT EVATT World Staff Writer
8/30/2006

View in Print (PDF) Format

Group pays $2.8 million for complex
Eastland Mall has been sold for the third time in nine months to another development group with plans to revive the once-busy shopping center.

Eastland Partners LLC purchased the struggling mall from the Kallay Group for $2.8 million.

Ed Kallay, head of the Kallay group, said he is involved with Eastland Partners, though the general partner is P&H Properties, a Tulsa-based developer.

The group will proceed with the previously-announced plan to convert the mall into a business center with retail space.

"We will, absolutely," he said. "The resolve to do it is stronger."

Officials at P&H Properties said they will announce details on the future of Eastland next week.

James Walker, the manager of Mickey's bowling alley, one of four mall businesses open early Tuesday afternoon, said he was encouraged by the deal.

"They're already starting to clean up things around here," he said, referring to the new owners.

Landscape workers were trimming grass and clearing debris in Eastland's parking lot Tuesday.

The interior of the mall, however, was almost empty. Mickey's and Dillard's, both of which have their own outside
entrances, had sealed off their doors to the mall. Eastland Cinema 6, located in the mall's lower level, did not open until 4 p.m.

The doors to the main portion of the mall were propped open Tuesday afternoon, allowing dead leaves to blow inside.

Despite the invitation, no customers, workers or mall walkers roamed the halls. The decorative plants were starting to wilt. Any sounds made by a visitor echoed off into the silence.

The only tenant open for business in the main portion of the mall was the Center of Professional Studies, a training center for security officers. Employees there declined to comment.

Four other businesses had signs posted saying they were temporarily closed due to a lack of air conditioning, and the interior was warm and stuffy. Walker said the air had apparently been off all summer.

Dillard's, Mickey's and the theater all have independent air conditioning. The Center of Professional Studies had a series of floor fans blowing.

Kallay said that the mall's previous owners, Indianapolis-based Simon Property Group Inc. and Haywood Whichard of Raleigh, N.C., chose not to address a leak in the air conditioning unit, and that funds to repair it were not available until the new partnership was formed.

The partnership's plans and new funding are a bright sign in Eastland's often troubled history. Eastland began development in 1969, but construction delays caused it to sit half-finished for over a decade.

Indianapolis-based Simon Properties purchased the structure in 1979, but spent several years signing anchor tenants before finishing construction by 1986.

The mall thrived for a time, attracting more than 100 tenants through the mid-'90s. But stores began to close in 2001, including J.C. Penney, The Gap, Old Navy and other national retailers.

The final blow came last year, when Mervyn's LLC announced it would close all three of its Tulsa locations, including the one in Eastland.

Simon Properties sold Eastland to Whichard through NSC New Markets Real Estate of Atlanta in the last week of 2005 for $1.5 million. After months of negotiations, he sold the mall to Kallay for $2.5 million in late June.

[BricktownGuy]

Eastland Partners LLC is registered to:

PHILLIPS ROBERT E
4785 EAST 91ST ST STE 200
TULSA, OK 74137

[BricktownGuy]

9/21/2006
http://www.tulsaworld.com/NewsStory....u_E1_Eastl8693

9/22/2006
http://www.tulsaworld.com/NewsStory...._E1_Consu31442

[Swake2]

So, Tulsa now has two enclosed malls, down from eight.

The track record: two open, five converted, one demolished.

Woodland Hills Mall, open
Tulsa Promenade Mall, open

Eastland Mall, about to be converted to mostly office space
Southroads Mall, reconstructed into a big-box power center, still called Southroads
The Kensington Galleria, converted to high-end office space
The Williams Center Forum, converted to high-end office space
Outlet Mall of America, Now the Church at Battle Creek
The Annex Mall, demolished


Of Tulsa’s four large open air centers three still exist and mostly thrive, Utica Square, The Farm and Fontana.

The fourth was called Southland and was enclosed to become Promenade listed above.

[sophie]

The Eastland Mall deal is very interesting. Court records in Tulsa Co. show that Whichard has 2 foreign judgements against him while Kallay is racking up a wopping 21 lawsuits in the past 2 years. 8 of these are recent foreclosures. Something smells here. How could Kallay buy the mall under his name from WHichard if both have legal issues. Kallay must have a financial backer. No way he could get the financing for the purchase of Eastland. Also, look at the figures of the recent 3 transactions..they dont add up. In the past couple weeks, the partners of Eastland have filed for a zoning change (see website for INCOG). The infor is not specific. Are they trying for another PUD? Smells!

[BricktownGuy]

yep, something is cooking.

[ChristianConservative]

So, Tulsa now has two enclosed malls, down from eight.

The track record: two open, five converted, one demolished.

Woodland Hills Mall, open
Tulsa Promenade Mall, open

Eastland Mall, about to be converted to mostly office space
Southroads Mall, reconstructed into a big-box power center, still called Southroads
The Kensington Galleria, converted to high-end office space
The Williams Center Forum, converted to high-end office space
Outlet Mall of America, Now the Church at Battle Creek
The Annex Mall, demolished


Of Tulsa’s four large open air centers three still exist and mostly thrive, Utica Square, The Farm and Fontana.

The fourth was called Southland and was enclosed to become Promenade listed above.

This is following the trend of enclosed malls all over the United States. Outdoor centers are more convenient for a busy society. Parking at large centers is a hassle. Why waste the time when you're only wanting to go to one store? It's much easier for me to get in and out of Kohl's than JC Penney.

[sophie]

Kally is only "associated" with Phillips in Tulsa. He is not a partner. Who would lend him money with the lgal issues at hand? Looks like they will get a Shepherds mall. Suckers

[Rage 2.0]

It is getting a total re-due and renovation... There is leasing for business space now...

It is a $30 million make-over It is a nice looking mall but bad location...

[sophie]

Here is an article that was in the Tulsa World about this Ed Kallay in Tulsa. Sounds like a nutcase!
Ups and Downs: Money Has Its Price: Developer faces problems with lawsuits, past-due taxes
By OMER GILLHAM World Staff Writer
1/28/2007

View in Print (PDF) Format


Ed Kallay, a Tulsa developer who recently announced plans for a $15 million office complex in Brookside, has earned and lost a fortune during his career. He now faces legal challenges and past-due taxes, records show.

Kallay, 46, said he is about to close a development deal called Rockford Village, a proposed group of office buildings near 41st Street and Rockford in Brookside.

During his career as a developer, Kallay has earned millions but records show he owes more than $500,000 in bad loans, court judgments and other credit.

In an interview with the Tulsa World, Kallay admitted that he has been foolish with his cash and now faces an uphill battle.

"I made mistakes," he said. "I did what 90 percent of the other idiots would do who have more money than brains."

Kallay Group once owned or managed 1 million square feet of commercial space in Tulsa. Kallay said he has earned millions developing office complexes, shopping centers and warehouse markets.

Kallay is best known for the Woodland Park development, a bustling movie and restaurant venue near U.S. 169 and 71st Street.

Kallay said he and his partners earned $3.5 million on the

development. He said much of his earnings were spent irresponsibly on an expensive home and by doling out $50,000 and $20,000 bonuses to employees.

Additionally, Kallay discussed his business, bad debt, allegations of fraud and Las Vegas gambling trips. He also discussed plans for a comeback that includes Eastland Mall in addition to Rockford Village.

Kallay bought Eastland last year and sold it for $2.8 million. He said he remains involved as a limited partner in the development and says it could yield $20 million for investors when occupied as a business center with retail space.

The gregarious Kallay has helped form more than 45 companies since 1990, records show. He is known for taking risks on properties that other developers ignore or overlook.

Kallay said the high-stakes transactions involved in commercial development have some similarities to the transactions of gambling.

"I'm the kind of guy who can bet the maximum on three hands" and not flinch, Kallay said. "One partner got sick and had to go up to his room when I bet those hands. It made him that sick. I don't gamble unless it fits my system."

After living the life of a millionaire that includes playing polo, Kallay said he is now strapped for cash. On some nights, he said, he shops at the discount store and buys "cheapo" bread and other discount food items.

But Kallay and his wife, Suzanne, have retained their Southern Hills Country Club membership for practical reasons, he said.

"We don't miss meals, but there have been times when we didn't have food in the house but we chose to pay our club bill," Kallay said. ". . . It's really about balancing the assets."

As he attempts to dig out from what he describes as a financial mess, Kallay said he still lives in his $1 million home although he mainly keeps to one room.

"I'm a typical guy," he said. "I can get by with less space and fewer things."

Local banker Evans Rector said Kallay is one of the best when it comes to commercial development.

"He has an uncanny ability to have a number of options on any particular development, and he knows how to structure something so that it works," said Rector, president of Bank of the Ozarks, Oklahoma Division.

Rector financed Kallay's development of Woodland Park among other projects.

"I've dealt with Ed for more than 15 years and never had a problem with him or his projects," Rector said. "We're looking at financing three different projects for him right now."

Shelby Oakley, a Kallay investor and friend, also can attest to Kallay's business skills.

"He's probably the best I ever saw at spotting the good deal that others miss," said Oakley, who developed Keystone Plaza in Sand Springs on a suggestion from Kallay. "The problem is that once he finds it, he just gives it away to other people who may not know what to do with it."

After many years with few legal problems, Kallay and his companies were named as a defendant in 15 lawsuits from 2004 to 2006. The suits include foreclosures and bad bank notes in addition to claims of fraud.

Five of the lawsuits have been dismissed or settled, while five others have resulted in judgments against Kallay or his companies. The final five suits are pending.

In Tulsa County District Court, M&I Marshall and Ilsley Bank won foreclosure judgments against Kallay and his companies for about $210,000, while SpiritBank is seeking $280,000 for a defaulted note.

Additionally, land records reveal about $220,000 in tax liens filed against Kallay and Associates and Suzanne Kallay. One tax lien filed Aug. 23, 2005, by the IRS totals $206,394.

Even with debt and legal problems, Kallay said he will win it all back and pay everyone off, eventually.

"I have a list of everyone I owe, and I intend to pay everyone," Kallay said. "I'm not going anywhere."

Kallay said some of his trouble had its seed in one of his most successful business deals. Developing and selling the 55 acres that became Woodland Park created volumes of cash that he admits he could not handle.

In addition to spreading around money to friends and associates, Kallay said he built a house he could not afford.

"I made a dumb decision," he said. "I thought the house would take my wife's mind off her father, who was ill with cancer. It didn't work. We ended up building more than we could afford. I probably spent all the money we had. I kind of stuck my head in the sand."

Records show that Kallay's 6,450-square-foot home is valued at $980,800.

There were other factors contributing as well. In about 2002, Wyatt McVay moved to Tulsa from Virginia to invest with Kallay's projects, records show.

Court records show lawsuits and legal actions in which McVay and Kallay argued over property proceeds and a sales commission. In one case, McVay collected a $111,000 commission that Kallay says was his. McVay eventually paid $50,000 of the commission to Kallay, records show.

McVay declined to comment when contacted by the Tulsa World. His attorney, Heath Hardcastle, said McVay has no ill will toward Kallay.

In another case, McVay asserted what appears to be his legal right to claim all proceeds from a commercial development at 15th Street and Yale Avenue, court documents show. Consequently, Kallay was sued for alleged fraud by B.P. Loughridge, a local investor from whom Kallay borrowed $100,000 and then failed to pay off when the development deal matured. The case was dismissed May 13, 2004.

"I paid back everything I owed him and more," Kallay said of Loughridge. "I have never defrauded anyone, ever. And if other investors ever lost money, it was because they chose to do so or they didn't step up."

In another lawsuit, McVay had Kallay evicted from his offices in the 4100 block of South Harvard Avenue last April for non-payment of rent.

After years of speculation, Kallay has moved closer to developing Rockford Village. He is working with investor Robert Mazzetti, a retired orthopedic surgeon from Austin, Texas.

While the deal shows promise of going forward, the development does not come without problems. Kallay has been sued by the paving and excavation companies that installed the utilities and roads at Rockford Village. McGuire Brothers Construction and Carter Excavation are seeking $224,485, which they claim Kallay owes them.

In the meantime, Kallay has secured a contract with Iron Horse Development to purchase all of the property and develop a dozen office buildings there during the next 24 months, said Bob David, with Iron Horse. David said he hopes to close the deal within 30 days.

As Kallay moves forward, he said he realizes the changes he has gone through during the past few years.

"This is all behind me, really, and I'm happier than I've ever been," Kallay said. "I'm sorry that some people are disappointed in me, but I'm going to pay back everyone I owe."



--------------------------------------------------------------------------------


Tulsa World staff writer Curtis Killman contributed to this report.




--------------------------------------------------------------------------------



Edward Kallay

Profession: Commercial developer

Major project: Development of Cinemark -- hotel and restaurant property near 71st Street and U.S. 169

Personal: Born July 4, 1960

Age: 46

Home: 2625 E. 37th St. (assessor's value is $980,000)

Title: President of Kallay Group

Memberships: Southern Hills Country Club

Education: Bachelor's degree in economics, Westminster College, Fulton, Mo.

Hobby: Polo

[bombermwc]

Wow, its crazy to see how the mall business in Tulsa has bottomed out. Is everything just moving to the outdoor strip concept or what? As bad as things got at some of them in OKC, they managed to convert and stay open. I'm surprised that Tulsa doesn't have a large super-mall now that there are so few. If I remember right from the last time I was there, Woodlands is about the size of Quail Springs. Is that right? And its the biggest mall in Tulsa isn't it?

[sophie]

I think they are about the same size. There is also a new mall being built in Tulsa called....Tulsa Hills. It is on the east side of 75 South. It is said that it will put all other upscale malls in OK to shame

[In_Tulsa]

Woodland Hills is about the size of Penn Square in OKC. Woodland has 1.2 million square feet. Eastland was the smallest mall in Tulsa. Here is some info on both malls

Woodland Hills Tulsa
http://www.simon.com/mall/LeasingShe...land_Hills.pdf

Penn Square OKC
http://www.simon.com/mall/LeasingSheet/Penn_Square.pdf