Three Arkansas developers have purchased three shopping malls in Arkansas, Oklahoma and Colorado.
Midwest Mall Properties, a limited liability company with members Doyle Rogers of Batesville, John Flake of Little Rock and Sam Mathias of Springdale, have purchased the Northwest Arkansas Mall in Fayetteville; Crossroads Mall in Oklahoma City and Citadel Mall in Colorado Springs from in Santa Monica-based Macerich Company.
The three malls contain over three million SF of space.
Purchase price was in the $400 million range. Closing date on the properties was Friday, December 29.
According to Flake, discussions with Macerich, one of the nation’s most respected real estate investment trusts with a portfolio of over 75 regional shopping centers, originated in 2001.
Flake said he, Rogers and Mathias at first considered only the Northwest Arkansas Mall, but as discussions progressed, the Oklahoma and Colorado malls peaked their interest.
“Arkansas is home to Doyle, Sam and me, so our first inclination was investing in our home state. But as we researched the two other superlative properties, we decided to strengthen our investment by including them as well,” Flake said.
The Northwest Arkansas Mall, with anchor tenants Dillard’s, J.C. Penney’s and Sears, has over 820,000 SF, sits on 122 acres and has over 100 specialty stores and restaurants. Located on U.S. 71 near I-540, it has undergone a recent renovation. Over 450,000 people shop at the mall each year.
The Crossroads Mall in Oklahoma City is at the crossroads of I-35 and I-240. The largest of the malls purchased by Midwest Mall Properties, this 1.2 million SF mall sits on 46.5 acres and is anchored by Macy’s, Dillard’s, J.C. Penney’s and Steve & Barry’s, a revolutionary value apparel retailer. Crossroads has been a landmark in south Oklahoma City for thirty years and has over 125 specialty stores and eateries. Over one million people visit the mall each year.
Citadel Mall, over 1 million square feet in size, has Macy’s, Dillard’s, J.C. Penney’s and Burlington Coat Factory as anchors. Located on the corner of Platt and Academy on 47.7 acres in Colorado Springs, the mall is visited by half a million people each year. It has over 160 shops and restaurants.
Flake has developed numerous properties, including the 40-story Metropolitan Tower in downtown Little Rock and One Echelon Plaza in Jackson, Mississippi. Rogers, considered the pioneer in downtown Little Rock development, is best known for developing what is today’s Peabody Hotel, Statehouse Convention Center and the Stephens Building, all in downtown Little Rock. Mathias has developed over three million square feet of property, mostly in Northwest Arkansas and Tulsa, the largest being Garrett Place in Tulsa and Fiesta Square in Fayetteville.
No management changes are planned at any of the malls. Macerich will continue its role in mall operations and leasing.
The lead lenders were Bear Stearns of New York and LaSalle Bank of Chicago. Arkansas banks participating were Twin City Bank, Chambers Bank and Liberty Bank. Williams & Anderson PLC, led by Paul Hoover, represented the purchaser.