Jones Lang LaSalle acquires GGP third-party management mall duties
Chicago Mall owner General Growth Properties Inc. and Jones Lang LaSalle announced Monday that the two companies have forged a long-term agreement that puts Jones Lang LaSalle in control of the management and leasing responsibilities for the properties in GGP’s third-party management division.
The terms of the deal weren’t disclosed, but it adds 18 regional shopping malls and community centers in 11 states to JLL’s already hefty 84 million-sq.-ft. portfolio in the Americas and 265-million-sq.-ft. portfolio globally.
Also as part of the deal, Jones Lang LaSalle will absorb 230 employees that work in the General Growth division. Both companies have agreed to share profits from the management contracts based on the properties’ performance in the coming months and years.
“The opportunity to partner with General Growth Properties and bring these properties into our portfolio allows us to be able to provide our strategic services to new and existing clients, help these owners maximize the value of their assets, welcome more than 200 talented retail experts into our team and expand our portfolio with 18 quality regional malls and community centers across the country,” said Greg Maloney, president of Jones Lang LaSalle Retail.
“We have a long-term relationship with some of the country’s top institutional and private owners of retail properties,” added Tom Nolan, president and COO for GGP. “This strategic alliance with Jones Lang LaSalle allows our clients to leverage the resources and talents from both GGP and Jones Lang LaSalle and, ultimately, we create a broader range of services for our clients, thereby strengthening their bottom line.”
The properties that are part of the deal include Burbank Town Center in Burbank, Calif., Festival Bay Mall in Orlando, Laurel Commons in Laurel, Md., and Towson Commons in Towson, Md.
General Growth, the country’s second-largest mall operator with more than 200 regional shopping malls in 44 states, sought Chapter 11 bankruptcy protection in April 2009 after failing to refinance portions of its $27 billion debt as they came due, filing the biggest real-estate bankruptcy in the U.S. history. However, certain subsidiaries, including GGP’s third party management business conducted by General Growth Management, Inc. and GGP’s joint ventures, were not filed for protection.
HomeGoods to open its first Manhattan store
New York City Winick Realty Group announced that HomeGoods has signed on for its first Manhattan location.
The discount home-furnishings retailer will occupy 5,732 sq. ft. on the ground floor and 20,671 sq. ft. of retail space on the lower level in the new development called Columbus Square. It is located at 795 Columbus Avenue, between 98th and 99th Streets.
The new HomeGoods store is expected to open in the first quarter of next year.
Casual Male to launch superstore concept
Canton, Mass. Casual Male Retail Group said it will open Destination XL (DXL), a new men’s superstore concept catering to the bigger and taller man. The initial DXL stores are planned to launch in Chicago, Houston, Memphis and Las Vegas this summer.
The new format will feature a wide range of clothing, shoes and products under one roof, with collections of good, better and best products merchandised by lifestyle. With a 12,000-sq.-ft. footprint, the stores will carry product assortments in a range of very broad sizes starting at XL in tops and a 42-inch waist in pants for the bigger customer and a 38 inch waist for the taller customer.
The Casual Male superstore concept was created following a six-month consumer research study conducted by L.E.K. Consulting that found that big and tall men are looking for more options in a “one-stop-shop” environment and are willing to travel longer distances for a place that caters to their specific needs.
“DXL is a new and innovative retail concept that is attuned to our customers’ needs,” says David Levin, president and CEO of CMRG. “Our target customer wants choices, value for their dollar and the convenience and unique shopping experience DXL offers. We are confident that our new lifestyle superstore concept will offer the unique shopping experience that many big and tall men have been seeking.”
The DXL superstore concept also will be supported by an all-inclusive e-commerce site, launching in 2011, which will offer the same breadth of apparel and products.
Currently, Casual Male Retail Group operates 454 Casual Male XL retail and outlet stores, as well as 19 Rochester Clothing stores.