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Norwalk mall notes: Stocks, opinions

Updated, 10:30 p.m. Sunday: Comment from Doug Adams; 3:30 p.m., Saturday: New story added.

NORWALK, Conn. – Some GGP/mall news for you, mostly a collection of articles on the Internet:

  • Architects: The old mall is dead
  • Unusual trading on GGP
  • Markets Daily predicts negative impact on GGP stock
  • CNBC: Mall trends benefit GGP
  • Rilling points to the bottom line
  • Maryland Sears being halved

Architects: Retail streets replacing malls

Retail streets are in, traditional malls are out, according to The Architects Newspaper.

“Although new ‘traditional’ malls are rarely being built, shopping centers are still popping up, or being reformatted. Perhaps ironically, one of the most popular mall replacements are retail streets,” the story published Tuesday states.

The story goes on to describe the planned Coral Gables Miracle Mile, a pedestrian-friendly experience, and the planned Miami World Center, also heavy on the pedestrian aspect.

Miracle Mile was originally planned to include big-box anchor stores but this was rethought as the industry changed, the story states.

“In Coral Gables we own Shops at Merrick Park which helped solidify the area as a shopping destination and helped bring about the revival of the Miracle Mile,” GGP Senior Planner Doug Adams said in a Sunday email. “We believe we will have a similar effect in Norwalk.”

“World Miami project is 26 acres right in the middle of Miami.  It is 20+ times the size of our project and therefore different in concept and design,” Adams said.



GGP’s put options

“GGP Inc (NYSE:GGP) saw unusually large options trading on Monday. Stock investors bought 11,842 put options on the company. This is an increase of approximately 1,096% compared to the average daily volume of 990 put options,” Baseballnewssource.com reported Thursday.

“A put option is an option contract giving the owner the right, but not the obligation, to sell a specified amount of an underlying security at a specified price within a specified time. This is the opposite of a call option, which gives the holder the right to buy shares,” Investopedia states.

An August story from Forbes state that new options were trading, with an April expiration.

“One of the key inputs that goes into the price an option buyer is willing to pay, is the time value, so with 242 days until expiration the newly trading contracts represent a potential opportunity for sellers of puts or calls to achieve a higher premium than would be available for the contracts with a closer expiration,” Forbes states.


‘Negative press coverage’

“News stories about GGP (NYSE:GGP) have trended somewhat negative on Wednesday, according to AlphaOne Sentiment,” Markets Daily reported Wednesday. “…recent media coverage is likely to have an effect on the stock’s share price in the near future.”

Oddly, the list of “negative” stories includes one with this headline:

“Somewhat Positive Media Coverage Likely to Impact GGP (GGP) Stock Price

To see other stories, click the link.

Here’s a story that was published after the reference to negative news:

GGP Inc (GGP) Shares Cross 4% Yield Mark

That Nasdaq story refers to GGP stock “changing hands as low as $21.57 on the day.”


GGP reinvented its Chicago-area mall

GGP is finding creative ways to reimagine its shopping centers to compete with online behemoth Amazon, CNBC reports.

That’s in a story about potential opportunities in the closings of Macy’s and J.C. Penney’s.


Rilling uses GGP document to explain his support

Mayor Harry Rilling, after Tuesday’s Common Council meeting, restated his support for The SoNo Collection.

Rilling pointed to a page of a document recently created by GGP, which touts the money that will go to Norwalk, and other aspects of the planned mall:

  • $3.5 Million payment to the City of Norwalk towards a Community Development Fund that will benefit the surrounding community
  •  $1,022,500 fixed payment to the City of Norwalk for necessary easements
  • $550,000 payment to the City of Norwalk towards a circulator trolley system to get people around the corridor  without  having to  use their cars
  • 5% of the project dedicated to Public Realm space, this includes activated and programmable space for the public to enjoy
  • Limit restaurants to 6% of leasable GGP intends to connect with and complement the existing restaurant and entertainment businesses in SoNo
  • Upgrades to surrounding pedestrian walkways and bicycle trails, connecting to the Norwalk River Valley Trail, on-site bike share program and bike storage facilities
  • A commitment to sustainable development

GGP 17-0417 20170428

GGP shrinking Sears in old mall

The Sears at The Mall in Columbia, a Baltimore area mall opened in 1971 and renovated in 2014 by GGP, is being shrunk from two floors to one, according to news reports.

Sears has been struggling.

The space will be replaced by a Barnes & Noble, with a full service restaurant, and an entertainment center that includes bowling, laser tag, billiards, video games and a full-service restaurant, the Baltimore Sun reports.


5 responses to “Norwalk mall notes: Stocks, opinions”

  1. NonPartisan

    Is there any information on how the 3.5mm community development fund is earmarked to be spent?

    While this go into general funds and be used to lower real estate taxes?

    1. It would have to go into the general fund, Mayor Rilling said.
      This is from a story I wrote last week (https://nancyonnorwalk.com/2017/04/norwalk-dems-grill-rilling-igneri-on-ggp-bjs-grasso/):

      The $3.5 million will go to improve the urban core, Rilling said, explaining that the technicality is that, as with any government, it will have to go into the general fund first and then the city will have to figure out how to allocate it to do the most good.
      Fair Housing Commissioner Daisy Franklin asked about a fund to create housing for people who make between $35,000 and $65,000 a year, referring to as 35/65 housing, given that housing had originally been planned for GGP’s site, on West Avenue adjacent to Interstate 95, and originally created by taking properties through eminent domain.
      She also expressed concern that “local people will have some shovels in that ground.”
      Rilling said that GGP’s LDA did not include housing, but said the possibility of using the GGP cash to create a 35/65 fund is being studied.
      “That is what I would like to see happen and we are going to be working to make that happen,” Rilling said. “Yes, I have talked to them about hiring disadvantaged businesses. They are required to work with people locally … and we are working with them.”

  2. Tish

    Thanks Nancy for the interesting article from The Architects’ Newspaper. It’s helpful to hear what’s going on in the trade.

  3. Hawkeye

    How exactly is Norwalk immune to what is going on in the rest of America as it pertains to retail stores and Malls???

    What crystal ball does GGP and the common council have?

    Has anyone heard an official statement from the proposed anchor stores?

    These haunting photos of the retail apocalypse reveal a new normal in America


  4. Townie Tim

    More on Hawkeye’s point:


    As much as I would like to see something happen in the Reed-Putnam Development area before I die, is a mall really they way to go at this point in time?

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