HOUSTON – (Realty News Report) – The shuttered Macy’s store at West Oaks Mall has been purchased a unit of Metha Investments, which purchased the remainder of the west Houston regional mall last year.
Macy’s has closed a number of stores around the nation as part of an industry-wide trend that have called the “Retail Armageddon” – a shakeout in retailing characterized by the expansion of e-commerce and closures of older retail concepts, such as Sears and J.C. Penney. Suburban malls built in the ‘60s, ‘70s and ‘80s are under pressure.
West Oaks Mall was built in the early 1980s at the intersection of Westheimer and Highway 6 in Houston’s Alief area.
“Retailers across the board are focusing capital toward building an omni-channel presence creating an in-store experience, rather than a standalone ‘bricks and mortar’ approach. The new West Oaks Mall ownership plans to create this type of experience and breathe new life into the area. CBRE is excited to be a part of that vision,” said Brian Ashby, Senior Associate, CBRE.
Ashby and Sydney Dixon of CBRE’s Houston office represented Macy’s Holdings in the transaction. The 243,337-SF two-story Macy’s building sits on 18 acres.
1st Emporium, Inc., Mehta Investment’s retail division, plans to redevelop the former Macy’s box into a department store, The Outlet at West Oaks.
“Experiencing the downturn of West Oaks Mall was very discouraging and I wanted to bring life back to this area,” said Sunil Mehta of Mehta Investments. “My family and I decided to purchase the mall with the vision that we could be that vessel that brings the revitalization, and we look forward to launching The Outlet at West Oaks and seeing this property transform into a popular retail destination again.”
“While researching potential buyers for Macy’s, we learned that Mr. Mehta’s company owned the rest of the mall. His vision for revitalizing the box and the mall were a perfect fit for buyer and seller,” said Sydney Dixon, Senior Associate, CBRE.
The Outlet at West Oaks is expected to open in the next few months and house outlet priced clothing and goods. One of the retailers will be Formal Gallery, a formal dress shop owned and operated by Rita Mehta, Sunil’s wife.
CBRE Research shows that consumer interest in discounted, off-price and low-priced goods rose significantly in the wake of the 2008 recession. Despite recovery of the overall economy, the U.S. consumer has retained an interest in low prices and value. This is reflected in the ongoing growth of discount and off-price retail.
Jan. 17, 2018 Realty News Report Copyright 2018