West Oaks Mall New Owner Acquires Former Macy’s Building

HOUSTON – (Realty News Report) – The former Macy’s store at West Oaks Mall has been purchased by a unit of Mehta Investments, which acquired the remainder of the west Houston regional mall last year.

Macy’s, like many legacy department-store chains, has closed numerous locations nationwide amid a long-term shift in retailing. The trend—sometimes described as “Retail Armageddon”—reflects the rapid expansion of e-commerce and changing consumer habits that have left older retail concepts, such as Sears and J.C. Penney, under pressure. Many suburban malls built in the 1960s, 1970s and 1980s have struggled to adapt.

West Oaks Mall opened in the early 1980s at the intersection of Westheimer and Highway 6 in Houston’s Alief area. Over time the complex experienced declining foot traffic and tenant turnover, a pattern common to many regional malls that must reinvent themselves to remain relevant.

“Retailers across the board are directing capital toward an omnichannel approach that emphasizes the in-store experience rather than relying solely on traditional bricks-and-mortar formats. New ownership at West Oaks Mall intends to create that kind of experience and bring new energy to the property. CBRE is excited to support that vision,” said Brian Ashby, Senior Associate at CBRE.

Ashby and Sydney Dixon of CBRE’s Houston office represented Macy’s Holdings in the sale. The two-story Macy’s building totals 243,337 square feet and sits on an 18-acre parcel.

1st Emporium, Inc., the retail division of Mehta Investments, plans to redevelop the former Macy’s into a department-style outlet called The Outlet at West Oaks.

“Watching West Oaks Mall decline was discouraging, and I wanted to help restore vitality to the area,” said Sunil Mehta of Mehta Investments. “My family and I purchased the mall with a clear vision: to be the catalyst for revitalization. We look forward to launching The Outlet at West Oaks and seeing this property transform back into a popular retail destination.”

“During our search for potential buyers for Macy’s, we discovered that Mr. Mehta’s company already owned the rest of the mall. His plan to revitalize both the anchor box and the broader property made him an ideal buyer,” said Sydney Dixon, Senior Associate at CBRE.

The Outlet at West Oaks is expected to open within the next few months and will focus on off-price apparel and goods. One confirmed tenant will be Formal Gallery, a formal dress shop owned and operated by Rita Mehta, Sunil Mehta’s wife.

CBRE research indicates that consumer demand for discounted, off-price and value-priced merchandise rose sharply following the 2008 recession. Even as the broader economy recovered, many U.S. shoppers retained a preference for lower prices and strong value, contributing to sustained growth in discount and off-price retail formats. That shift helps explain why redeveloping an anchor into an outlet concept is a logical strategy for reviving foot traffic and meeting current consumer expectations.

Mehta Investments’ approach combines physical retail redevelopment with an emphasis on experience and value. By converting the large, vacant department-store space into an outlet destination and aligning tenant mix with local demand, the owners aim to create a refreshed shopping environment that attracts bargain-seeking customers and improves the overall mall ecosystem.

Redevelopment planning for the 243,337-square-foot former Macy’s includes interior reconfiguration to accommodate multiple outlet retailers and shared common spaces, improved signage and entrances to better integrate the anchor with the mall’s corridors, and updates to loading and service areas for more flexible tenant use. Management says the goal is to balance value-oriented retail with enhanced customer experience to drive repeat visits.

Local stakeholders and mall patrons will be watching to see whether the new outlet format succeeds in reversing years of decline. If the project attracts consistent shopper traffic, it could serve as a model for how smaller regional malls can adapt anchor vacancies into new retail destinations that reflect today’s shopping patterns.

Jan. 17, 2018 Realty News Report Copyright 2018