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re: So Cortana amazon project in jeopardy
Posted on 5/20/20 at 10:53 am to fallguy_1978
Posted on 5/20/20 at 10:53 am to fallguy_1978
I don’t think it is a bluff.
If they make decent operating income off a store which is used to offload surplus merchandise, Amazon would need to make it worth their while to sell.
The property doesn’t cost them anything in rent. Maintenance is probably minimal. Merchandise is already being written off by the main chain. They don’t have many employees. Etc.
They would need a financial incentive to move and would need a new location to push the merchandise. And the disused Sam’s across the street may not be suitable for their purposes.
If they make decent operating income off a store which is used to offload surplus merchandise, Amazon would need to make it worth their while to sell.
The property doesn’t cost them anything in rent. Maintenance is probably minimal. Merchandise is already being written off by the main chain. They don’t have many employees. Etc.
They would need a financial incentive to move and would need a new location to push the merchandise. And the disused Sam’s across the street may not be suitable for their purposes.
1
Posted on 5/20/20 at 11:06 am to Cymry Teigr
Just to clarify.....
Cortana site is planned to be a Distribution/Fulfillment center. The current closest one to us is Mobile. You will see lots of 18 wheeler traffic and employee traffic only.
The Siegen site (replacing Airline Hwy tent site by Costco) is a last mile delivery station. Most things Amazon delivers to you will come from the Siegen site. They have already started construction. You will see 100’s of Amazon branded vans here.
There are exceptions when Amazon uses USPS and UPS, the products may come from somewhere else.
The fulfillment center will store product and increase availability of 1 day shipping for BR.
Cortana site is planned to be a Distribution/Fulfillment center. The current closest one to us is Mobile. You will see lots of 18 wheeler traffic and employee traffic only.
The Siegen site (replacing Airline Hwy tent site by Costco) is a last mile delivery station. Most things Amazon delivers to you will come from the Siegen site. They have already started construction. You will see 100’s of Amazon branded vans here.
There are exceptions when Amazon uses USPS and UPS, the products may come from somewhere else.
The fulfillment center will store product and increase availability of 1 day shipping for BR.
Posted on 5/20/20 at 11:15 am to teke184
quote:
And the disused Sam’s across the street may not be suitable for their purposes.
It could probably be made suitable, but who is going to pay for that work?
If Amazon offered cash plus a ready to stock new building plus moving expenses, to move down the street, they can probably find Dillard's is willing to make an offer.
Dillard's, I'm guessing, has no need to sell this property. They just announced their quarterly dividend last week, and it's steady. They had net income headed into this recent mess. As far as brick and mortar retailers go, they are doing pretty decently.
Posted on 5/20/20 at 11:18 am to LSUFanHouston
quote:
It could probably be made suitable, but who is going to pay for that work?
Sadly, I think the government might have to get involved to facilitate that if they consider this an important enough project.
Amazon sounds like they're ok with pulling out. Dillard's has no real incentive to close in order to help Amazon.
Posted on 5/20/20 at 11:25 am to fallguy_1978
If they do, they do. It would actually be productive for once rather than throwing money at the Gravy types.
I want the distribution center here but, by the same token, Amazon made the offer on the site knowing Dillard’s owned that building and didn’t want to close. So I don’t see why Dillard’s gets the blame for killing things instead of Amazon for balking.
I want the distribution center here but, by the same token, Amazon made the offer on the site knowing Dillard’s owned that building and didn’t want to close. So I don’t see why Dillard’s gets the blame for killing things instead of Amazon for balking.
Posted on 5/20/20 at 11:36 am to nicholastiger
Can't Mayor SWB just put together a task force and investigate this fully?
Posted on 5/20/20 at 11:41 am to Indefatigable
quote:
Dillard’s can have the old Sams that’s right there across the parking lot
Dillards already owns that building. No need to move anywhere.
Posted on 5/20/20 at 12:43 pm to red sox fan 13
Ole Dirty Dillard’s
Posted on 5/20/20 at 12:45 pm to whitetiger1234
quote:it has nothing to do with race....it is 100% fact.
I sense racist undertones
Posted on 5/20/20 at 1:11 pm to LSUFanHouston
quote:
It's not uncommon for anchor store buildings to have separate owners from the rest of the mall.
Yes. The mall owners (like Simon, et al) own the common area between the anchors and the parking lots. They made their money on the small shop space by charging outrageous rents and CAM fees.
When the department stores started declining so the did the business of the smaller tenants in the mall proper. The vicious cycle took it from there and accounted for the demise of malls except for the class A malls with strong anchors and premier locations.
Separate ownerships of the anchor stores also account for the difficulty in repurposing the mall properties. That's what your seeing now with Cortana/Dillards/Amazon.
Posted on 5/20/20 at 4:47 pm to Indefatigable
quote:
Dillard's can have the old Sam's that's right across the parking lot
This is a great idea. That Sam's wasn't there that many years before it was closed, so it's a much more modern facility. Only negative with this site, compared to the current Dillard's Clearance Center location, is visibility.
Posted on 5/20/20 at 6:02 pm to #1TigerFan
WAFB reporting it now
Posted on 6/15/20 at 11:47 am to nicholastiger
Bump.
As expected, Dillard's doesn't need to sell and they own most of their stores outright. Given these factors, Amazon will have to up their ante.
LINK
As expected, Dillard's doesn't need to sell and they own most of their stores outright. Given these factors, Amazon will have to up their ante.
LINK
quote:
While other retail chains have been hammered in recent years by the rise of e-commerce, Dillard’s has remained relatively strong, largely because of its vast real estate holdings. As of January, Dillard’s owned 244 of its 285 stores, which includes 30 discount outlets, around the country, according to the company filings with the Securities and Exchange Commission.
In recent years, those assets have attracted large institutional investors, according to securities analysts. In fact, more than 80% of the company’s class A stock is owned by just a handful of large hedge funds, SEC filings show.
“Hedge fund investors get into Dillard’s all the time because they know they have that real estate on their balance sheet,” says Jen Redding, a securities analyst with Wedbush Securities. “They’ll buy for that reason and hope the real estate will go up.”
quote:
Recent sales suggest the company commands top dollar for its real estate, even in tertiary markets, some smaller than Baton Rouge.
In February 2019, a Dillard’s subsidiary sold its store at the Southern Park Mall in Boardman, Ohio, for $8.92 million.
In July 2019, the company sold a clearance store, like the one it operates at Cortana, in Boynton Beach, Florida, for $4.5 million.
In a situation even more similar to that of Cortana, Dillard’s was reportedly the last holdout in a deal to redevelop the shuttered Fiesta Mall in Mesa, Arizona. In January, the company finally sold the discount store it had continued to operate at the former mall for a whopping $7 million.
Posted on 1/8/21 at 3:53 pm to Golfer
Bump. UPDATE:
Amazon developer files plans for massive distribution center at Cortana Mall site
Looks like they have gotten past the Dillard's stuff. Expected to bring 1,000+ new jobs to the area. More importantly though, arguably the biggest waste of space and the biggest eye-sore in the city is now going to be redeveloped.
Amazon developer files plans for massive distribution center at Cortana Mall site
Looks like they have gotten past the Dillard's stuff. Expected to bring 1,000+ new jobs to the area. More importantly though, arguably the biggest waste of space and the biggest eye-sore in the city is now going to be redeveloped.
quote:
The application is for a distribution center on the Cortana site that will have a 2.895 million-square-foot warehouse, with a 45,000-square-foot office building, pump house and guard house.
Earlier this week, Seefried officials met with the mayor’s office and members of the Metro Council, who were required to sign confidentiality agreements, to brief them on the project, according to sources familiar with the situation. The purpose of the briefings, which were held in small groups so as not to violate the state’s open meetings law, was to make sure officials from the city-parish were on board with the project and would be supportive of the developer’s needs before any public documents were filed, the sources say.
quote:
The filing today of the Seefried application with the Planning Commission confirms in writing what Daily Report has reported since 2019 about Amazon’s plans for the market and the Cortana Mall site. It also indicates that the on-again-off-again tussle between the developer and the owners of Dillard’s, one of the mall anchor tenants, has been resolved.
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