Article Excerpt:
TWST: Would you begin with a brief historical sketch of Feldman Mall Properties and a picture of things as they are now at the company?Mr. Feldman: Feldman Mall Properties, Inc., traces its roots to a real estate company that was started around the turn of the last century by my grandfather. Today our focus is on the acquisition of underperforming regional malls that are in great locations but need to be upgraded and renovated. That's what we do exclusively as a company.
TWST: What are the typical reasons for malls underperforming?
Mr. Feldman: There's just generally too much retail in America. Too much
retail space per capita generally is the problem. As a result of that
excess, a tremendous number of opportunities are created whereby these
malls can be purchased at significant discounts to replacement cost,
even though they are often in great locations, either in major markets
or strong secondary markets. We can still acquire these malls at
significant discounts to replacement costs, despite a very overheated
real estate market.
Tickers included in this excerpt: FMP
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