Feldman pushing past 'pain' of cost overruns, delays at Colonie Center - Orlando Business Journal:

evlampiyacyxybyw.blogspot.com
Construction of the nearly 10-story-high theater is also taking longer than whichmeans won't open in time for the critica holiday shopping season. The opening has been pushed backto "You don't build great structures without incurringv some pain," said Larry Feldman, chairman of , a Long Island compangy that owns a minority stakd in the mall. The cost overruns and delayede theater opening are among the challengew Feldman Mall Propertiesis facing. The companuy (NYSE: FMP) has invested more than $70 millio to spruce up Colonie Centee andlure big-name retailers such as , The and sincer buying the mall in February 2005 for $82.2 million.
The overruns have pusheds the company's total renovation costs to roughly $85 million, Feldman said. Despite the huge upfront expens e and a precipitous dropin FMP's stock valuse since it went public in December 2004, Feldman said the company's strategyt of boosting the value of so-callefd under- performing malls and positioning them for future saled will pay off in the end. FMP also has a stakee in six other mallas insix states. "The best way to fix the stock is by said Feldman, who gave up his title as CEO to concentrate on tenant leasin g and redevelopment. "We're working very hard to improver performance inthe company.
I thino we're making good progress on that part." FMP absorbs the cost to bring in tenants such as Barnes Noble and The Cheesecake Factory undert the theory they draw a big crowd that also spendz time walking throughthe mall. The increasede activity is supposed to improve sales forall retailers, whicu would convince more stores to open at the mall and increases the occupancy rate. Although the 1.2-million-square-foot mall's total occupancy rate stoor at 92 percent asof June, analysts who tracl the industry measure performance by looking at occupancuy minus the big anchors and temporary tenants, Feldmahn said.
As of June, the interior shop spacs occupancy rate was 80 percent with a base rentof $26.34 per square Feldman's goal is to hit 90 percent or more. He expectw that will take one or two The higher theoccupancy rate, the bigget the rents that can be chargedc to the smaller shops, Feldman That, in turn, boosts the mall's overall value for potentialk buyers. Although it seems strange for Barnes & Nobl e to move from a 29,000-square-foot store on Wolf Road directluy across the street intoa 34,000-square-foog store at Colonie Center, Feldman said the booksellerd expects a big jump in sales after the new store opend Nov. 14.
Instead of a stand-alonwe store, Barnes & Noble will be in a mall environmen where patrons are likelgy to spend even more time browsing before or aftef they eat ata restaurant, go to a movier or shop at another store, Feldmanj said. "They get 20 percent to 30 percent additional salesthey wouldn'tf otherwise get," he said. " are the ones that discovered thiswhole lifestyle- mall