Friday, August 20, 1999
Columbus-area malls not for sale
Redevelopment plan in works
BY LISA BIANK FASIG
The Cincinnati Enquirer
COLUMBUS — Mall owner Richard Jacobs, who announced Monday that he was putting his 38 shopping malls and 19 hotels up for sale, said Wednesday that any sale would not include his three malls in Columbus.
“Northland Mall is not for sale, and it never has been,” Mr. Jacobs, chairman and chief executive of the Richard E. Jacobs Group, said at a news conference Wednesday. “This also holds true for Eastland and Westland malls.”
Mr. Jacobs, who put his Cleveland Indians up for sale in May, said the sale announced this week applies to a majority — but not all — of his assets. He would not say which other properties may be kept, and sources at Jacobs Group in the Cleveland suburb of Westlake could not be reached Thursday.
In the Tristate, Jacobs Group owns Eastgate Mall in Clermont County and Towne Mall in Middletown.
The Columbus malls are part of a redevelopment portfolio, Jacobs Group President Martin Cleary said earlier this week.
Mr. Jacobs has waged a public battle against the developers of the proposed Polaris Fashion Place mall, which he says would kill Northland by drawing away its anchor stores. His allies collected enough signatures on petitions to force the issue onto the November ballot.
Easton, a mixed-use development of housing, offices and retail, also is within a 30-minute drive of Northland.
Mr. Jacobs said Wednesday he remains committed to expanding and renovating Northland if its department stores agree to stay. Recently, Dillard's Inc. said it would open stores in Northland and Eastland malls.
Malachy Kavanagh, a spokesman for the International Council of Shopping Centers, said there are several potential buyers for the Jacobs properties, which he said is “probably one of the last privately owned large portfolios.”
“They'll sell well,” he said. “I doubt it will take a year.”
He said that since most mall portfolios are publicly held Real Estate Investment Trusts, or REITs, developers have to create greater shareholder value. Acquisitions are faster than building, so most REITs will opt to buy.
Mr. Kavanagh named the Simon Property Group, ERE Yarmouth and General Growth Properties as potential suitors. All are larger than Jacobs.
The Associated Press contributed to this report.
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TRISTATE BUSINESS SUMMARY
Columbus-area malls not for sale
INDUSTRY NOTES: MANUFACTURING
Trade imbalance soars
TRISTATE MARKET SPOTLIGHT
