Crossroads to be sold

[mranderson]

A report on KFOR this morning reported that the owners of Crossroads Mall may finally have awakened and made the decision to sell the mall.

Who should buy it? What should be done with it? (anything from remodeling it to turning it into a prison).

This is technically in the rumor stages, however, the news media rarely airs rumors.

[Patrick]

Hooray. One can only hope Crossroads is purchased by a serious investor. Problem is though,Crossroads was owned by a major mall management corp. and not even they could get it right. I'd love to see a company like Urban Retail Inc. come and and remodel Crossroads like they did with Penn Square back in the late 80's. Macerich Properties definitely wasn't going to get the job done.

I only hope Crossroads doesn't go the way of Heritage Park though if it's sold. For the mall to be sucessful, it's going to need a serious investor.

[Patrick]

Sounds to me like Macerich is dodging the question.

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"Is Crossroads Mall on the sale block? Business, community leaders question meaning of owner's financial statement
by Janice Francis-Smith
The Journal Record
6/23/2005



The financial health of Crossroads Mall in south Oklahoma City has been a topic of interest of late, as transportation officials consider closing a highway exit road used as one of the mall's primary entryways. But concerns over a statement in the mall owner's financial filings indicating that the company may sell the mall may be unfounded, company and community leaders said Wednesday.
Crossroads Mall is owned by the Macerich Co., a real estate investment trust that is one of the largest owners and operators of regional malls in the United States. The California-based company's portfolio includes 75 regional malls, with occupancy levels at 92.5 percent in 2004.

On May 2, the company announced first quarter results that included net income to common stockholders for the three months ended March 31 of $18.1 million, or 30 cents per share diluted, compared to net income of $18.1 million, or 31 cents per share, for the same period of 2004.

The financial statement makes one specific reference to Crossroads Mall: "The results of Crossroads Mall in Oklahoma for the three months ended March 31, 2005, and 2004, have been reclassified to discontinued operations as the company has identified this asset for disposition."

"That's all we can say, because we're a public company," said David J. Contis, executive vice president and chief operating officer of Macerich. "The fact that it may be noted for disposition does not necessarily mean it will be disposed of. It's a technical accounting rule, that's all…. What we have to do is they make that disclosure if they may sell something.

"And from our point of view, we never discuss - ever - whether or not we're selling an asset," said Contis. "We don't comment on it until you have a contract until you have a done deal, because there's always reasons you may or may not sell something."

Roadblocks

Crossroads Mall is literally at the crossroads at the center of the state, the junction of Interstates 35 and 240. Transportation officials recently wrapped up a yearlong construction project to widen I-35 that temporarily closed various access ramps around the mall, making access to the facility more difficult than usual.

Now, the Oklahoma Department of Transportation is looking at a project to improve the interchanges between the two highways that would improve safety, but would permanently close the Pole Road exit off of I-240, one of the two major entryways to the mall. The proposed improvements would have mall customers exit a little further down the road at Eastern Avenue, adding about a mile on to the trip.

Legislators and community leaders are petitioning ODOT to leave the Pole Road exit open. State Sens. Debbe Leftwich, D-Oklahoma City, and Jim Reynolds, R-Oklahoma City, have called on their constituents to provide public comment to ODOT, letting them know how important the Pole Road exit is to the mall. It is estimated that about half of the mall's 4.2 million annual shoppers take the Pole Road exit.

Intentions

Elaine Lyons, president and CEO of the South Oklahoma City Chamber of Commerce, said the company's actions don't indicate they have any intention of selling the property. Macerich recently hired an engineering firm to examine how improvements could be made to the highway interchange while preserving the Pole Road exit, said Lyons.

"They've invested a lot of money in that," she said. "If they weren't staying, I don't think they would have hired an engineer to redo that area. They've also hired a gentleman to come in and help with the retail side of it to help fill the mall. So they're making some major investments."

The South Oklahoma City Chamber has sent a letter to ODOT stating the plan to close the Pole Road exit would present an "inconvenience to customers and would be a hindrance to economic development in south Oklahoma City," said Lyons.

"Ten million dollars in sales tax and $826,000 in property tax are not economic ingredients Oklahoma City can afford to lose when there are viable options for all parties," she said, noting that the mall employs roughly 1,300 employees on a regular basis and more during the holiday season.

But it may not be such a simple task to keep Pole Road open while preserving safety standards for the new highway interchange, said Cole Perryman, public information officer for ODOT.

"The distance there would be far too short for us to fit those entrances and exits to those ramp systems," said Perryman. "It would create what we call here at the department 'weaving.' The weaving created by that is once of the most dangerous situations you can have in an interstate-to-interstate exchange."

ODOT is investigating a plan that would preserve the Pole Road exit, but the final design must adhere to the specifications required by federal highway safety regulations.

"Trying to put that design into function would raise a lot of alarms with the federal regulations," said Perryman.

Christi Parks, senior marketing director for Crossroads Mall, said it is not unusual for a company to re-evaluate its holdings. From time to time other entities have expressed a desire to purchase the Crossroads property, "but to my knowledge no deal has been struck," said Parks.

"There's nothing that we're aware of here locally, and the company has been really good at keeping us in the loop," said Parks."

[okcpulse]

Whether or not Crossroads Mall is generating sales and property tax for Oklahoma City is not the real concern. We could say that Crossroads generates $10 million in sales tax revenue, but what if a better mall were there? How much more would that mall generate.? And imagine the amount of property taxes would be generated just from higher property values. I'm no real estate expert, but the $826,000 or so dollars in property tax is on a piece of property that looks ike something you'd see in some desolate desert city. Portions of the parking lot are blistering from deteriorating pavement. Probably hasn't seen a car since 1986. It is a sea of asphalt and and severely out of date structures. If the constantly empty parking lot is any indication, then the city could afford to temporarily lose tax dollars in lieu of better property and double the amount of revenue collections.

Stop making excuses, Crossroads. Oklahoma City left you behind, and so has ODOT.

[Luke]

How risky an investment is that mall? With it's "stereotype" and the closing of the interstate exits, which respectable organization would buy such a risky investment?

[Patrick]

How risky an investment is that mall? With it's "stereotype" and the closing of the interstate exits, which respectable organization would buy such a risky investment?

For the right price....Anything is up for sale and worthy of buying

[BricktownGuy]

I still stand behind what I said sometime back on the Southside Update forum:

I think before long we all will hear that Macerich has sold Crossroads. From the type of response that Jenncole and Patrick have received I wouldn't be surprised if a possible deal is already in the works for a sale.

Elaine Lyons, president and CEO of the South Oklahoma City Chamber of Commerce, said the company's actions don't indicate they have any intention of selling the property. Macerich recently hired an engineering firm to examine how improvements could be made to the highway interchange while preserving the Pole Road exit, said Lyons.

"They've invested a lot of money in that," she said. "If they weren't staying, I don't think they would have hired an engineer to redo that area. They've also hired a gentleman to come in and help with the retail side of it to help fill the mall. So they're making some major investments."

Just cause they are spending money does not mean they do not want to sell. Sometimes you have to invest some money in order to sell. Invest some $ now, could mean make $$$$$$$$ soon.

Just my opinion.

[soonerdm]

I live Southside and am disappointed in the maintenance the mall receives. Outside of Dillard's the sidewalk tile is coming up and the doors seem to always be broken.

My wife (who claims to be a stay at home mom, but if she is always shopping is she really at home?) often travels to Norman for shopping. I defiantly think better maintenance, a real food court and some small remodels would go a long way... and an Old Navy store....