Most of Owings Mills Mall to be demolished, redeveloped
JC Penney, Macy's, AMC to stay
A mostly empty parking lot outside Macy's at the Owings Mills Mall Wednesday, Oct. 13, 2010. (Karl Merton Ferron, Baltimore Sun / October 13, 2010)
Mall owner General Growth Properties will work with Kimco Realty to redevelop and "de-mall" the 1-million-square-foot site — a move that mirrors the remaking of a shopping area in Hunt Valley. Developers said Thursday that they did not know how much of the mall they would demolish, but they expect anchor stores Macy's and JC Penney, as well as the AMC movie theater, to stay.
Surrounded by empty parking lots, the mall has lost a series of tenants over the years, an exodus that experts say left it without hope of recovering in its current form.
It opened in 1985 and was first meant to be an upscale shopping destination. Saks Fifth Avenue opened in 1986 but closed after a decade. Store after store later left the shopping center, including anchors Lord & Taylor, Sears and Boscov's. Most of the mall is now vacant.
Community leaders and county economic development officials say the project is poised to go hand in hand with other efforts to revitalize Owings Mills. The mall sits near the site of the future Metro Center, a long-awaited project that finally broke ground earlier this year.
They also hope it could emulate the transformation of the former Hunt Valley Mall — a shopping center once nicknamed "Death Valley" — that was also "de-malled" and turned into the successful Hunt Valley Town Centre.
"After great effort, the wait is over," County Executive Kevin Kamenetz said. "To the people of Owings Mills, congratulations, because it's going to be happening now."
The Owings Mills Mall project is "still in the design phase," said Tom Simmons, president of Kimco's Mid-Atlantic and Northeast shopping centers regions. Developers plan to release a more detailed proposal next year and finish building by late 2014.
They don't yet know which tenants would move in, but expect them to include both big-box and smaller "junior box" retailers, said Simmons and Richard Pesin, General Growth's executive vice president for anchors, development and construction. The project will transform the enclosed mall into an exterior-facing "town center."
The partnership between the two companies makes sense, analysts said, because General Growth specializes in owning regional malls while Kimco, the nation's largest owner of shopping centers, has an expertise in the non-mall center.
"It is pretty clear that Owings Mills as a regional mall has no future," said Nathan Isbee, a vice president at Stifel Nicolaus & Co. in Baltimore who follows retail real estate investment trusts. "It is dying. It is either do nothing and let it die as a regional mall or try to reinvent it as something else that would draw people to the site."
The mall is so empty that "there is zero interest from national retailers to lease space in Owings Mills Mall," Isbee said.
The type of center developers ultimately build will depend upon the anchors and other retailers they are able to attract, experts said. They said developers will likely try to find a "destination" retailer without a presence in that area now, such as Wegmans, Costco, Kohl's, Lowes or Sports Authority.
"If you get one destination retailer, other retailers will be willing to come along," Isbee said. He added that despite the store closings by several large chains, "national retailers are in pretty good shape now and looking to add new stores. Balance sheets are strong, and they've weathered the storm pretty well."
The Metro Center development is set to eventually feature the county's largest library branch, a community college center, and retail, residential and office space.
The Solo Cup Co. property, less than two miles from the mall, is also slated for redevelopment, although plans there haven't been finalized.
"The hope is that we would achieve a full, high-quality buildout" of the area, said Dan Gundersen, the county's economic development chief. "What we need is that vibrant mix of retail, residential and entertainment venues."
Nearly 155,000 people live within a five-mile radius of the mall, according to 2009 county estimates, with about 66.2 percent of the households making more than $50,000 a year.
"The demographics that surround the mall are not consistent with the condition of the mall today," Kamenetz said.