Northwest Plaza up for sale again
Written on February 14, 2008
The troubled Northwest Plaza in St. Ann is up for sale again, although the owners and the city say a massive redevelopment will continue as planned.
A sale of the mall "would not be expected to disrupt the development," one of the mall’s co-owners, Somera Capital Management, said Wednesday in a news release. Executives of Somera, based in Santa Barbara, Calif., could not be reached for further comment.
The 1.8 million-square-foot mall has been on the decline for several years. Many of its retailers have left along with the customers. The mall’s owners and St. Ann officials recently announced a $250 million redevelopment plan for the mall, including $96 million in public funding.
The news release announcing the sale also said a big tenant was signed, Wal-Mart Supercenter. A Wal-Mart spokeswoman said that once the Supercenter is open, a store about a half-mile away on St. Charles Rock Road probably would close. A date for the new store opening has not been set.
Somera and Zelman Cos., based in Los Angeles, bought the 125-acre property in June 2006 for $45 million in a partnership called NW Plaza Owner LLC. The seller, Australia-based Westfield Group, had owned Northwest Plaza for about eight years.
As the mall’s fortunes have declined, so have St quick payday. Ann’s sales taxes, which fell to $1.5 million in 2006 from about $3.4 million in 2000. The 2007 sales tax figures are not yet available.
As part of the redevelopment plans, the mall will be returned to its original, open-air format. Retail space will be reduced, and up to 450,000 square feet of office space will be added.
Construction on the retail portion of the mall is set to begin early next year, with completion targeted in 2012.
City officials were informed last month that the property would be put on the market, said Mayor Tim James, adding that a sale does not affect the city.
"We anticipated Somera selling it, maybe not quite so soon," James said. "Our attorneys have looked at it, and we are fine with it."
The proposed renovations make the project an attractive investment for the city.
"It is a $250 million project with $100 million in public money, and a lion’s share of the legwork has been done," he said. "It’s a pretty good deal."
rtstclair@post-dispatch.com
314-340-8206
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