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Plans aim to put Colonie Center on 'A' list COLONIE - A movie theater, an indoor aquarium and a bank of flat-screen TVs may await shoppers at Colonie Center in the near future, according to initial plans by the mall's expected new owner. Feldman Mall Properties Inc., an Arizona-based real estate investment trust, outlined what it had in mind for the 39-year-old shopping center in a prospectus filed in December with the U.S. Securities and Exchange Commission. The company agreed to buy the 1.2 million-square-foot, 120-store regional mall from The Blackstone Group, a New York City-based investment firm, for $84.2 million. The deal could close this week. Feldman said it would spend at least $10 million upgrading concourses and entrances at the mall, located at Wolf Road and Central Avenue in Colonie, and also would seek to bring in more entertainment attractions. The company said it would add another $10 million to the purchase price if Blackstone can secure leases with some new, unnamed tenants by June 30. Blackstone would be responsible for the costs associated with signing the new retailers, including fitting up existing space, according to the prospectus. Feldman specializes in buying "underperforming" properties and turning them into better money-makers. At Colonie Center, both occupancy and average rents have been declining since 1999, according to the prospec tus. Occupancy at the mall averaged 73 percent in 2003, down from 80 percent in 1999. Average rent per square foot jumped from $17.64 in 1999 to $22.67 in 2000, then declined to $20.63 in 2003, the document states. In the prospectus, filed in advance of its initial public stock offering, Feldman said it wanted to capitalize on the mall's prime location off the Northway. It would do that by adding signs, including a large, free-standing pylon sign and an outdoor color video screen somewhere on the mall's edifice that would announce special events and promotions. Other plans and ideas outlined in the company's filing included: Continuing "advanced negotiations" with a retailer that would serve as an upscale junior anchor tenant, "which will be the first of its kind in Albany." Other negotiations are taking place with another junior anchor, the filing said. Adding indoor attractions, including a series of aquariums. Other ideas include a television viewing area with "comfortable leather sofa seating and modern, full-size, flat-screen televisions." The company also discussed building a children's play area, adding indoor and outdoor seating at mall restaurants, or even hiring a full-time piano player to be located in a prominent location. Feldman said it wants to create a "lifestyle theme" at the mall. Lifestyle is a buzz word among shopping mall developers as they attempt to make their properties more inviting, said Paco Underhill, founder of Envirosell, a New York City research firm that studies shopping behavior. "Landlords are trying to make the transition from being concerned about rent to being concerned about the customer experience. We call that the place-making exercise," he said. And Colonie Center would be ripe for that kind of treatment, said Jeffrey Pfeil, president of J.W. Pfeil & Co. Inc., a retail developer and consultant in Sara toga Springs. "It's probably a sensible direction to go in," he said. "Entertainment brings in more shoppers." Colonie Center is the only regional mall in the area without a movie theater. Feldman considers Colonie Center a "Class B" retail center, occupied by stores with estimated annual sales of $285 per square foot. The company wants to bring the mall up to "Class A" status, which means annual revenue by retailers of more than $350 per square foot. The mall saw overall revenue of $14.3 million in 2003, according to the prospectus, including $9.6 million in rent. Net income was $7.4 million. For the first nine months of 2004, the mall reported revenue of $10.1 million, including $6.7 million in rent. Net income for the period was $5.1 million, according to the prospectus. Shopping malls owned by private companies typically don't report rents or revenue. The most recent financial information available on Crossgates Mall in Guilderland, filed in connection with a lawsuit brought against its owner, Syracuse-based Pyramid Cos., puts revenue at the 1.6 million-square-foot mall at $45.1 million in 2001. That included $25.7 million in rent and 240 tenants. Net revenue after expenses came to $9.6 million for the year. Dan Higgins can be reached at 454-5523 or by e-mail at dhiggins@timesunion.com. |
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