Iowa developer buys Valley West Mall for $11M, but JCPenney lease complicates plans

An Iowa developer has bought the 58-acre Valley West Mall site for $11 million (£8.2 million). The company is now starting a major redevelopment project, but it must first deal with complex lease agreements and get support from the city. Brian Martin, president and chief executive officer of Threshold Capital and Threshold Development, completed the purchase of the long-troubled West Des Moines shopping center. His company plans to turn the large site into a mixed-use area with retail, housing, and entertainment. The project is expected to cost between $300 million and $350 million. However, the master plan depends on solving several legal and financial issues. The biggest challenge is a long-standing lease with department store giant JCPenney. The developer must also get city approval for public financing incentives.Anchor tenant holds long-term lease rightsA key part of the redevelopment is a nearly 50-year-old lease held by JCPenney, one of the property's original anchor tenants. According to reporting by the Business Record, the current agreement gives JCPenney major control over operations and the power to block major changes around its part of the property. The lease limits w...