Wednesday, October 13, 2010

Still no buyer for Atlas Park

From Retail Traffic via The Real Deal:

Societe Generale and Calyon are planning to put the Shops at Atlas Park on the auction block within the next two months. Last week, it looked like the center might secure a buyer in McCaffery Interests Inc., a Chicago-based firm that specializes in underperforming urban real estate. By Friday, however, McCaffery opted not to pursue the acquisition.

"We thought there was an ability to fix it,” says Daniel McCaffery, president of McCaffery Interests. “But negotiations broke down."

McCaffery would not reveal the reason for the breakdown in negotiations, but claimed it was not over price considerations. He said there appeared to be one other bidder for the asset, a fact that Paul Millus, the receiver, confirmed. Millus said the other bidder was currently negotiating with the lenders and waiting for the foreclosure sale to be completed.

In Davidowitz’s view, a prospective buyer of the Shops at Atlas Park could reasonably expect a 40% to 50% discount on the bank’s original investment. The surest way to make the center successful would be to overhaul the mix of tenants at the property, bringing in value-oriented big-box tenants such as WalMart, T.J. Maxx and discount shoe retailer DSW, as well as supermarket chain Aldi, he says.

These are the kinds of chains that fit well with the demographics in Glendale and that would also be a better draw for residents outside the immediate trade area, emphasizes Davidowitz.

29 comments:

CntrySigns said...

Its interesting they think they can bring in a big box store to this property. Where the heck do they think all the traffic go? That 80th Street bridge can barely handle what it gets now.
Also, the only reason the mall was allowed to be built in the first place is that it was only allowed to build certain size businesses. Now that its there they want to change the zoning again to allow bigger stores! The reason it failed is not because of lack of big stores, it was the lack of diverse stores.

Anonymous said...

"The reason it failed is not because of lack of big stores, it was the lack of diverse stores."

Diverse stores gimme a break


WRONG, the reason it failed was poor planning, piss poor management,and a general ineptness by Damon Hemmerdinger's ATCO organization.

Sarah said...

Walmart will hurt every small retail business from Myrtle to Metro. Glendale & Middle Village will never be the same again.

A Beter NYC said...

Hey Sarah...

If you want to support small retail businesses in Glendale & Middle Village...that's fine with me.

I'm going to Walmart....and saving a lot of money.

Anonymous said...

I don't understand why people think Walmart will ruin local business. What about K-Mart, Target, Marshalls, TJMax? They all exist and yet local businesses still stand. Bring Walmart in and that Mall will be a success. Walmart has a discounted pharmacy for seniors, which is needed.

Babs said...

I would prefer Bloomies myself - now THAT store supports American workers AND American manufacturer's as well as ethical global factories.

If I lived in your nab, aside from Bloomies, I would put in for a Home Goods store - it has good quality items but is not considered an exclusive store although Joe may think it too upscale for his tastes. (heehee . . . )

AND of course a Walmart would KILL local small businesses - people would go there simply because there is NOwhere else to go! THAT's NOT good for a nab.

Shame

Anonymous said...

Most people don't have the money to shop in an expensive store like Bloomies. JC Penney and Walmart would better suit that neighborhood. If Walmart is so bad, why does it thrive in all the markets they are in? We drive to Long Island to shop there and are pleased with their prices and merchandise. Walmart won't kill local business. It will attract more people to shop in that neighborhood.

Babs said...

JC Penney, Macy's, etc. fine - but I still say no to Walmart because of where their merchandise comes from.

You mentioned prior about drugs for seniors - Walmart was caught selling counterfeit drugs - their suppliers are from India mostly because of the low cost. Google it if you are interested.

Also - the middle class CAN and DOES shop in Bloomies - there is something there for everyone. IF of course you are interested ONLY in the cheapest of the cheap - then understand that you are supporting China and India.

Anonymous said...

The problem with these store suggestions is that they can all be found elsewhere in Queens (and easier to get to). Either find a store that doesn't already have locations in the borough or turn it into classroom space with some restaurants and the theater. Walmart would not work there, too small a space. Why not a Whole Foods? How about a Fairway (one is opening or already open in Douglaston shortly I think).

Babs said...

That's a great idea - and I've been looking forward to that Fairway in Douglaston! I noticed that they have not started building yet - which concerns me - I hope they are really moving in.

P.S. - the closest Home Goods store that I know of is in Port Washington.

Sarah said...

No Walmart in Glendale. It will destry our community.

Anonymous said...

To me, the primary obstacle to shopping at Atlas Park is having to pay for parking. The mix of stores is only a secondary reason.

[To be honest, I haven't been to Atlas Park for a while and don't know if they ever instituted any sort of parking validation or a "first-hour's-on-us" type of promotion.]

I assume that paying for parking in the original plan for the development was a "must-have" since the cost of building the parking garage itself was a major capital investment that had to be accounted for.

If, however, an entity is able to purchase Atlas Park at a greatly reduced price (thereby cutting down the capital replacement need), perhaps the new owner/operator could institute a parking policy whereby the first three hours are free and then a fee kicks in that subsequently increases at an hourly rate.

For example, someone parks in the garage. As soon as it's been three hours, they're charged $3 and any portion of an hour thereafter at a rate of $1/hour.

I've use three hours here since that gives most shoppers a chance to see a movie and perhaps do a little browsing.

I used the $1/hour rate since it makes it easy to follow this example. However, I actually think the initial fee after three hours and subsequent hourly rate should likely be greater since the owners probably wouldn't want the garage to serve as some sort of a low-cost park-and-ride facility.

My main point is this, paying for parking is accepted for a high traffic, commercially dense area like around the mall on Queens Boulevard. Around Atlas Park with the lower density it's much tougher to get a shopper who's willing to accept anything BUT free parking. By having SOME free parking, if only for a limited period of time, it may encourage people in the immediate area to consider checking out Atlas Park.

In defense of this statement, could you imagine ANYONE shopping at the mall on Metropolitan (where BJ's & Kmart are) if they had to pay for parking?

Anonymous said...

No WalMart in Glendale. I dont want the trash from down Ridgewood, Elmhurst, Jamaica, and Bushwick to want to hop on a bus and come to Glendale.

Anonymous said...

Babs, Home Goods doesn't sell quality items. They mostly sell slightly damaged or poorly designed items. It is basically a clearance store. You can find some deals there, but it's not worth going to if you want to purchase something specific.

Anonymous said...

oh please! like glendale doesn't have it's fair share of trash residing there. give me a break!

Babs said...

"Babs, Home Goods doesn't sell quality items. "

Thanks for the tip - I didn't know that. I'd rather do without than purchase damaged or poorly designed furniture.

Another poster speaks of parking fees - I didn't even think of that and that is a major issue for me. I don't like paying for parking in malls. Last year I went to the Queens Center Mall for the first time in a very long time and was shocked that I had to pay for parking. I would much rather take public transportation - not that that is so cheap any more!

Anonymous said...

Walmart - dream-store!!

Rebuild it so that there is free parking.

Queens Teacher said...

I say no to Walmart based on the fact that the Walton family are among those that want to "reform" public education.
To them, reform means cutting teachers and parents out of the process, breaking teacher's unions and opening as many charter schools as possible.
Don't shop at Walmart!!!!

A Better NYC said...

Queens Teacher...

How dare you critize the Walton family for wanting to improve public education.

You are obviously part of the problem.

In your comment you make no mention of wanting what's best for the kids....just what's best for the union and the teachers.

The NYC public schools system is the most worthless, corrupt, innefficient institution in the entire country.

Thousands of kids pass through your system without learning to read or write....and you don't see the need for any changes?

No one within your system has any accountability....and you don't see the need for anything to change?

Do yourself, the kids and the taxpayers a favor....find a new job.

Queens Teacher...you'r a disgrace, you're part of the problem and you're a dissappointment.

Anonymous said...

Hello everyone!

You seem to have gotten off topic. Please learn how to discipline yourselves and focus.

Anonymous said...

What ever happened to Free Enterprise? Lots of people would love to see a Walmart in the 5 boroughs. If you don't like Walmart, Don't shop there. It's not right to ruin it for the rest of the people who want it. Last I looked, this was America. The Walton family must be doing something right. They've been in business a very long time and turn a profit. Even shopping has become political. Lighten up people. You don't have to shop there if you don't want to. If Walmart comes to Glendale and no one shops there, it will close.

Sarah said...

The infrastructure was not designed to support thousands of shoppers and their cars. The streets will clog and it will become dangerous. Emergency vehicle will not be able to pass. Children will not be able to cross the street safely. I am not against Wal-Mart. I am against a store this big with such a big drawing capacity in a small community like ours. It just will not fit without causing damage.

Anonymous said...

"Queens Teacher...you'r a disgrace, you're part of the problem and you're a dissappointment."

you're an idiot if you think that TEACHERS are the problem and that the Agenda for those in favor of charter schools is education!

the reality is that there are some kids that are DUMB - or - they have parents who are DUMBER and don't give a hoot.

The REAL agenda for charter school advocates is total control of the curriculum - they want to teach creation in the schools, etc.

Once parents are paying they can LOWER the standards - like MANY of our private schools. Look at St. John's - $30,000 per year for their stupid kids to maintain a 2.00 GPA.

Anonymous said...

"They've been in business a very long time and turn a profit."

how 'bout a Hooters - they can turn a profit too!

Anonymous said...

"The infrastructure was not designed to support thousands of shoppers and their cars."

I think Sarah makes the most valid point about WalMart or another big box store in Glendale.

The tricky part is that the purchase of Atlas Park still has to a good investment for the purchaser. They have to believe they will get enough rent revenue to justify making the deal or it won't happen.

So, if Atlas Park is purchased and then fully leased and sufficient numbers people shop there to make it profitable then, unfortunately, there is bound to be a significant increase in traffic in the surrounding area.

Given the present level of mass transportation in this part of Queens, there really is no getting around this if the site is zoned retail.

Perhaps a mix of smaller retailers does make the most sense on this site. If the rents are low enough, the businesses wouldn't even have to be franchises to be able to afford them.

Anonymous said...

I want Walmart and Fairway - so there!

I want to save money on everything I buy so I want Walmart and want to eat well so I want Fairway - so there again?

Why not bring in the best and the biggest? Are the unions afraid that Walmart checks ID and follow federal and State laws in hiring employees? Good bye illegals!

Anonymous said...

I WOULD HATE A WALMART IN ATLAS PARK.

I HATE WALMART. THEY ARE UNION BUSTERS.

APPLE STORE, POTTERY BARN, TJ MAX .......YES WALMART NO

A Better NYC said...

QUESTION:
Why Walmart is the biggest and most profitable company on the planet?

ANSWER:
No union employees.

Anonymous said...

Who is this other interested buyer that the article refers to?

A Hemmerdinger shell company, perhaps?