Park Plaza Little Rock, a prominent midtown shopping mall, has seen its assessed value significantly reduced as part of a settlement reached between its former owners and Pulaski County assessor’s office. This agreement reflects the ongoing challenges faced by traditional brick-and-mortar retail establishments in the face of growing online competition.
Declining Value in the Face of E-Commerce
The settlement, filed in Pulaski County Circuit Court, lowered Park Plaza’s value by 40%, from $50 million to $30 million (excluding the Dillard’s Department Stores spaces). This reduction resulted in a refund of approximately $500,000 to the mall’s new owners. This case mirrors a similar settlement involving the Outlets at Little Rock, where the property’s value decreased by 43% to $34.3 million, prompting a $374,500 refund. These agreements highlight a broader trend of declining valuations for traditional retail properties across the country.
Several months prior, Pulaski County settled assessment challenges from Walmart Stores Inc., resulting in a collective $19.3 million reduction in value for eight of their properties. These settlements underscore the significant impact of the shift from in-store shopping to online retail. The dramatic decrease in value for properties like Park Plaza and the Outlets at Little Rock now stands in stark contrast to the rising value of e-commerce infrastructure, such as the new Amazon.com fulfillment center at the Port of Little Rock, appraised at $111.7 million.
Acknowledging the Shift to Online Retail
Legal representatives involved in the Park Plaza case acknowledged the undeniable impact of e-commerce on the retail landscape. William K. Elias, lawyer for the previous Park Plaza ownership, stated that the declining values of traditional retail establishments are evident nationwide. Pulaski County Assessor Janet Troutman Ward’s office confirmed that the settlements were reached partly due to concerns that a trial could result in even further value reductions.
Joe Thompson, chief administrator for the assessor’s office, explained that the county recognized the challenges facing large retail establishments, particularly with the rise of online vendors and the impact of recent events like the COVID-19 pandemic.
Park Plaza’s Ownership Transition and Current Status
Park Plaza’s previous owner, CBL Properties, filed for bankruptcy over a year ago and ultimately lost ownership of the mall. The property was sold at auction to its lender and is currently operated by the Woodmont Co., a court-ordered receiver. Woodmont continues to market available lease space at the 547,000 square foot mall, which includes two Dillard’s locations that were not part of the sale. The future of Park Plaza Little Rock remains to be seen, but its reduced valuation reflects the broader challenges facing traditional retail in the digital age.
