Malls to come under new ownerships
The commercial real estate landscape in Westmoreland County is about to change significantly, as buyers have been found for the vacant Greengate Mall and a major portion of Westmoreland Mall, both located in Hempfield Township.
The shake-up begs for answers to questions concerning the future of the 37-year-old Greengate Mall, and fuels speculation that Wal-Mart Stores Inc. could have an even larger presence in the area.
Hempfield Township officials are scheduled to meet this morning with THF Realty officials, presumably to talk about the sale of the Greengate Mall property, according to Rob Ritson, Hempfield Township manager.
"We do have a meeting scheduled with THF Realty, at their request. The topic wasn't announced, but it's our belief they're coming to discuss the Greengate Mall property," Ritson said Tuesday.
Founded in 1991, St. Louis-based THF Realty develops and manages large shopping centers in 20 states, including Pennsylvania, Ohio and West Virginia. THF Realty is the 11th-largest, privately held real estate development company in the United States. THF officials could not be reached for comment yesterday.
THF Realty is no stranger to Westmoreland County. Some of its efforts in the area include development of the Summit Ridge Plaza on Route 819 in East Huntingdon Township, and Hempfield Pointe Plaza, near the Amos Hutchinson Bypass exit.
Separately, the major portion of the nearly 1.3 million-square-foot portion of Westmoreland Mall that has been for sale will be acquired by CBL & Associate Properties Inc., according to Ritson.
Ritson confirmed he met with Jay Wiseman Jr., director of acquisitions and asset management for CBL, who told him the company is buying Westmoreland Mall because it's a "viable property and a great investment."
"They've indicated to me they will purchase the mall and operate it as it is now," Ritson said. CBL's Wiseman could not be reached for comment yesterday.
CBL & Associates is a publicly traded real estate investment trust (REIT) based in Chattanooga, Tenn., specializing in the development, acquisition and management of regional malls and community centers. The firm has a portfolio of 156 properties, including 54 enclosed malls in 25 states totaling 56.4 million square feet.
Westmoreland Mall, located along Route 30 east of Greensburg, is one of the region's largest enclosed shopping facilities and celebrated its 25th anniversary in September. Since 1985 the mall has been owned by a limited partnership, Westmoreland Mall Associates, which is now managed by Atlanta-based Lend Lease Real Estate Investments Inc.
The portion up for sale includes about 560,000 square feet of so-called "inline" stores. The mall is being marketed on behalf of Lend Lease by Granite Partners Inc. in New York. Officials there could not be reached for comment yesterday.
News of the pending sale of Greengate Mall could be a mixed blessing, according to state Sen. Allen Kukovich, a Manor Democrat, who said yesterday that he hopes THF Realty is a "long-range thinking developer."
THF Realty is known for its collaborative efforts with Bentonville, Ark.-based Wal-Mart, and Kukovich hoped the developers don't trade one big box store for another. Wal-Mart currently operates a store along Route 30 in Hempfield Square.
Kukovich said he was informed of the sale by the Smart Growth Partnership of Westmoreland County, a privately funded community land-use advocacy group. The group was formed last August by area business, education and government leaders who are concerned about urban sprawl and traffic congestion in the region.
"We've been working for some time on different alternatives, and we're concerned the site will just become another box store. We have a different vision for some of this area. On one hand, I'm glad the developer is showing some interest. I just hope they don't take the easy way out and throw up another Wal-Mart. If you move from the current Wal-Mart, you end up with another empty box on Route 30," Kukovich said.
Kukovich said he envisions creating a community development at the Greengate Mall site, which would be a mix of townhouse and recreational sites. He said the railroad tracks that run behind the mall would be the perfect setting to extend the rails-to-trails project from Pittsburgh to Greensburg and eventually to Washington, D.C.
The deserted Greengate Mall is owned by Greengate GP Corp., a subsidiary of New York Property Holding Corp., which paid $1.6 million to acquire the mall from its longtime owner, the Rouse Co. of Maryland, in August 1998. Greengate GP Corp. officials could not be reached for comment.
Sanford B. Gold, executive vice president of C.B. Richard Ellis in Pittsburgh, whose family owns the land under Greengate Mall, roughly 90 acres, yesterday said he heard rumors that the mall was sold but had no first-hand knowledge.
"Anything that would result in redevelopment of the site would be good news for everybody. It would be nice to get rid of an eyesore," Gold said.
John Skiavo, executive director of the Economic Growth Connection of Westmoreland County, said he also heard the rumor that Greengate Mall was being sold, and agreed that the news adds fuel to rumors that the mall could be the new home of a Sam's Club or Super Wal-Mart.
Skiavo said the Wal-Mart in Hempfield Square is small, by Wal-Mart standards, and that it is possible that Greengate Mall could be razed to accommodate a larger Wal-Mart structure.
As of Nov. 30, Wal-Mart Stores Inc. had 1,566 Wal-Mart stores, 1,244 supercenters and 522 Sam's Clubs in the United States. Company officials could not be reached for comment yesterday.
The Greengate Mall site also has been mentioned as a possible station for the proposed high-speed magnetic levitation transportation system that would extend from Pittsburgh International Airport to the Greensburg area. Pittsburgh and the Baltimore/Washington, D.C., region are finalists competing for $950 million in federal money to build the system.
Kukovich said yesterday that the project is so far down the road that it would be "foolish" to wait and see if maglev gets off the ground.
"We have some strong arguments, even with maglev, to create scenarios for that land," Kukovich said.
Tribune-Review staff writer Richard Gazarik contributed to this report.
