By J. Lee Howard
Charlotte Business Journal
Eastland Mall is for sale -- exactly two years after an Ohio real estate investment trust bought the 1.1 million-square-foot retail center and promised a $10 million makeover.
Columbus, Ohio-based Glimcher Realty Trust has bundled Eastland with two other Southeast shopping malls in a portfolio and is marketing the properties for sale.
Some observers say the proposed sale could mark the beginning of the end for the Charlotte region's fifth-largest shopping center, which opened in 1975.
"But that doesn't mean it couldn't reinvent itself," says local land-use consultant Walter Fields of the Walter Fields Group. "The stores could be re-tenanted. Markets change, and retailers change with the markets."
Officials at publicly traded Glimcher won't comment, and they decline to identify the brokerage firms the company has hired to market the three malls.
The other malls are East Pointe Plaza in Columbia, S.C., and Pea Ridge Shopping Center in Huntington, W.Va.
Glimcher disclosed its intentions in a recent filing with the Securities and Exchange Commission.
The possibility of new ownership makes Eastland's future an open question, local observers say. They note Glimcher had committed to work with the city to transform the property into a village center for Charlotte's east side.
Glimcher had teamed with the city, neighborhood residents and area business interests on a plan to redevelop the site, with the proposal including a transit hub for streetcars.
City officials say Glimcher representatives have said privately the company will continue its plans to upgrade the mall until a buyer is found. The question, of course, is whether a new owner will follow through on Glimcher's promises.
"From my conversations with the company, they plan to continue their efforts to redevelop the property, because if they can't get the price they're looking for, they don't want to lose time for redeveloping and repositioning the center," says Tom Flynn, assistant to the city manager for business relations.
He remains optimistic, noting Glimcher has continued talks with the Charlotte Area Transit System about CATS' buying a 2-acre mall parcel for a transit stop.
"We are glad they are going to continue their repositioning work," Flynn says. "If they had not, it would not have been good for the center or the east side."
A shifting marketIn August 2003, Glimcher took full ownership of the mall, buying the 80% stake held by The Cameron Group of Charlotte and Florida-based Hospitality International Group for $4.75 million. Before that deal, Glimcher held 20% interest in Eastland.
Shortly thereafter, the company announced plans to recast the mall to accommodate the east side's shifting demographics, which include burgeoning Asian and Latino populations.
The idea was to create a walkable town center with entertainment venues, shops and dining. The city kicked in $3 million from its Eastside Strategy fund to further leverage the makeover.
Among the plan's enthusiastic supporters was District 5 Councilwoman Nancy Carter, who represents the area.
Carter's belief in a vibrant future for the site hasn't wavered. If a new owner doesn't initially buy into the city's plans for the site, she contends, pressure can be brought to bear to make it reconsider. "We have the density here to make this a true town center," Carter says. "This mall has the potential to be transformed."
Market watchers say Eastland's viability as a traditional mall is drawing to a close. Competition from newer malls, they say, eventually will draw away the anchors -- Belk, Dillard's and Sears. Officials at those companies did not return phone calls seeking comment.
Some view the major threat as Childress Klein Properties' 1.2 million-square-foot Bridges at Mint Hill, planned for Lawyers Road at Interstate 485.
Chris Thomas, Childress Klein's retail partner, disagrees. He notes the Bridges project is more than 10 miles from Eastland and contends that development is more likely to draw shoppers from Union and Cabarrus counties than from Charlotte's interior.
Still, he acknowledges the Eastland area is a changing market and any new owner is going to have to recognize that. "There are still dollars to be spent over there," Thomas says. "Eastland is a viable retail location. It's just a matter of finding out which retailers will be successful there."
Mid-1970s magnet The 30-year-old Eastland Mall once was a commercial magnet, buoyed by suburban growth and unique attractions such as its indoor skating rink.
But through the years, Eastland hasn't remade itself the way SouthPark mall has. SouthPark opened five years before Eastland but remains a high-end retail hub that bears scant resemblance to its initial 1970 operation.
Meanwhile, the east-side demographics have shifted, and the enclosed mall as a concept has generally faded in popularity.
Several real estate sources say Glimcher officials previously talked privately about clearing the 30-acre Eastland site altogether and starting from scratch, possibly making it a discount retail power center.
"The big retailers want to be in higher-growth areas, and Eastland is bound in with no interstates nearby," says Andy Misiaveg, a partner at retail brokerage firm The Shopping Center Group. "Whoever buys it is going to have to be satisfied they can do something with it long term, without the current retail lineup."
In recent years, Eastland has lost key tenants, both within the mall and along its perimeter.

J.C. Penney, which closed three years ago, has been replaced by discount retailer Fred's Inc. and a Burlington Coat Factory. Across Albemarle Road, the former Upton's department store has sat empty for years. Other, smaller retailers also have closed or moved.
Weighing new usesIn June 2003, the city adopted a growth strategy for the area called the Eastland Area Plan. As part of that plan, it created a group called the Eastland Area Strategy Team, a coalition of residents, business owners and other interested parties wishing to help shape the area's future.
Most residents and businesses are aware the mall's clientele and surrounding neighborhoods are changing, says Kyle Woudstra, a senior associate at WGM Design Inc. and co-chair of EAST.
"Eastland Mall as a regional mall is no more," Woudstra says. The trick now, he says, is to make the best use of the land for future generations.
It may well be the property could be revamped to accommodate higher-density housing or other uses, he says. But major retail development "is not going to work on this site anymore."
The key may be to retool Eastland to cater to the area's growing ethnic populations, says Rich Barta, partner at retail brokerage and development firm Core Properties.
A Spanish language movie theater and stores catering to a variety of ethnic tastes could do well, he suggests.
"But redeveloping it as another 1 million-square-foot mall would be ill-fated," Barta says. "It would be like turning an apple into an orange."