Well, the main things I got out of this article were that Heritage Park Mall desparately needs renovating, but the demographics of the area don't support such an investment. So I guess we know now why Simon Property Group hasn't invested any money into renovating the mall, and we also know why they're selling it. This property is simple a money-losing deal. I guess the deterioration on the neighborhood around the mall has impacted it the most. I don't blame Simon...it isn't their fault the neighborhood went sour. We can complain all we want to that Simon should renovate the mall, but doing so probably just isn't a good business decision for a profit-maknig investor. With malls on the downturn, maybe someone should consider enclosing the mall and turning it into and outside shopping center.
In my opinion though, Simon Property Group should've sold the property for the loss. But I guess they're not losing anything by letting the property sit right now. I mean, all their doing is collecting rent from the few tenants that are left. Simon definitely isn't putting any money into renovating the place.
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"Real deal: Ali Ghaniabadi has plenty of growth in his future, desptie a lost deal with Heritage Park Mall
Posted: Monday, November 22, 2004
Real deal: Ali Ghaniabadi has plenty of growth in his future, desptie a lost deal with Heritage Park Mall
By Mallery Nagle
Ali Ghaniabadi said he has never been one to sit behind a desk.
Apparently, the owner of Brady’s Properties in Midwest City never sits anywhere for very long. He took the company over some four years ago, and the business has been on the move ever since.
When Ghaniabadi broke ground on the Stonebriar Shopping Center at S.W. 134th Street and Western Avenue in late September, it became his third commercial construction project. When complete, the 27,000 square-foot plaza will feature retail and office space.
By the end of this month, he plans to break ground on yet another shopping center. This 7,000 square-foot property will be located on the northeast corner of Hefner Road and Rockwell Avenue in the Warwick Crossing complex.
In all, Ghaniabadi owns a dozen shopping centers and two free-standing restaurants in the Oklahoma City metro area. His holdings include Robinson Crossing in Norman and Town and Country Shopping Center at N.W. 122nd Street and May Avenue.
He came to the United States in 1977 from Iran to attend college in the area, and spent the first 20 years of his career in the restaurant business, most recently owning Checkers in Midwest City. He also invested in real estate.
“I did not have enough time to devote to my family,” he said of the 80 to 90-hour work weeks required in the restaurant business. “So, I decided to leave the restaurant and devote my full time to my shopping centers."
Despite his large holdings, Ghaniabadi employs only two people, down from about 40 during his restaurant days.
“I like to do a lot of the work myself,” he said.
He almost had a lot more work on his hands -- Ghaniabadi had the commercial real estate community abuzz over his interest in Heritage Park Mall in Midwest City.
But the planned purchase of Heritage Park Mall and the adjacent former Montgomery Ward’s store did not come to pass.
“Heritage Park Mall has been in Midwest City for about 30 years. It had done very well, extremely well, throughout the years,” he said. “But the owners neglected the property to the point where it needs major remodeling to revitalize it.”
Ghaniabadi felt as though the demographics of the mall’s location simply did not justify the millions of dollars in renovations it needed to be a thriving shopping center again. The Montgomery Ward’s building was a separate deal, but the sales were contingent upon one another.
He placed a bid, and during the 30-day due diligence period, Radio Shack, Payless Shoe Source and two other large retailers closed their stores in the mall, reducing mall income by about $500,000 annually, he said. The deal was voided when the owners refused to adjust the price to compensate for the lost revenues.
He also said he decided that the mall was not a good investment with the impending competition of the shopping center under construction at I-40 and 29th Street, with Target and Lowe’s as anchors.
“The city needs the sales tax revenues (that the new shopping center will provide), and that creates problems for the mall,” he said.
This one lost deal, however, has not hurt his optimism.
“If you work hard in this country, you’ll be successful at what ever you do,” he said.
“This is a great country. If you’re happy at what you’re doing, then you’re successful. Just work hard and you’ll be fine.”
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