Crestwood Plaza for sale; Dillard's to close in October
08/17/2007 - The agreement between CBL Associates and Westfield for the divestiture of several area malls does not include another Westfield property — Westfield Crestwood.
City officials in Crestwood confirmed early this week that Crestwood Plaza was put up for sale on Friday, Aug. 10. A second blow was dealt to the future of the mall when Dillard's announced it will permanently shutter its store there in October.
"The City of Crestwood has been concerned for some time with the revenue performance of the Crestwood Mall," said Crestwood City Administrator Frank Myers in a statement released Aug. 10. "A recent analysis performed by the city showed that sales tax revenue from the mall has been declining by approximately 15 percent a year for the past several years."
A tentative sale of Crestwood Plaza to Somera Capital Management fell through in 2006. Somera is a real estate investment firm based in Santa Barbara and Los Angeles.
On Monday, Aug. 13, the city confirmed that Dillard's will permanently close its Crestwood store the week of Oct. 20, 2007.
"In 2006, anchor stores at the mall generated approximately $486,000 in sales tax revenue from the city's one cent sales tax only," said Myers. "Therefore, the loss of Dillard's will definitely have a negative impact on the city's sales tax performance in 2007 and beyond."
Myers said with technical assistance from several consultants, city administration has developed a strategy for the revitalization of the Crestwood Plaza property.
During his tenure as city manager of Trotwood, Ohio, from 1998 to 2004, Myers helped that city acquire a dying shopping mall. As a result of establishing several financial partnerships, the city was able to resurrect the mall into a successful, $70 million land development.
The strategy that Myers and city consultants have developed in relation to Crestwood Plaza will be presented Tuesday, Aug. 21, at a special meeting of the Crestwood Board of Aldermen. The meeting will be held in the Aldermanic Chambers at the city's Government Center, 1 Detjen Drive. It is open to the public.
On Thursday, Aug. 9, Westfield announced it had agreed to sell Chesterfield Mall to CBL & Associates Properties Inc. of Chattanooga, Tenn., which currently owns St. Clair Square in Fairview Heights, Ill.
In a separate agreement, Westfield will contribute three other shopping centers – Mid-Rivers, South County and West County in Des Peres – to a joint venture managed and controlled by CBL in return for a preferred minority limited partner interest in the joint venture. CBL will be responsible for management and leasing of the properties.