5Qs for Adam Flatto on Easton Town Center’s progress during the pandemic – Chain Store Age

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The Georgetown Companies CEO Adam Flatto

Nearly 30 years ago, when Limited Brands founder Les Wexner decided the huge parcel of land he owned off of Interstate 270 in Columbus would make a better retail destination than a distribution center, his plans for a combination of shops, restaurants, hotels, and apartments made some eyes roll. Today, Easton Town Center serves as one of the worlds largest and most successful examples of mixed-use real estate. Wondering how Eastons fared during COVID-19, we talked to its developer, Adam Flatto, CEO of The Georgetown Companies.

Hows Easton operating at this stage of the crisis? Whats open and doing well and whats not? Are you going to lose many tenants that have entered Chapter 11?Weve been extremely well received by customers. Weve been drawing up to 75 percent of last years traffic and thats without the theaters being open. The fact that Easton is an outdoor project has helped us. You can spend some time here with much less risk than youd have at a traditional mall. Our tenants have largely taken a collaborative, creative approach and our management team has worked to evolve operations incredibly quickly to put health and safety first.

COVIDs been terribly harsh to commercial real estate. Theres been a 300% increase in loans and mortgages being assigned to workout specialists. Have you gone that route?Easton was able to leverage its long-term financial strength with all of its lenders, including CMBS, commercial banks, and insurance companies, to develop a special service arrangement that includes deferring interest payments for a number of months. We were not in a position where we were forced to do this. Ohio Governor Mike DeWine urged lenders to enter into agreements like this and we called our lenders and proposed it. They were eager to negotiate the arrangement and I think we were the first to do it here. This allows us to be more flexible and support the 250-plus restaurants and retailers that call Easton home.

Mall of America has missed three mortgage payments and entered into a forbearance agreement. CBL has worked out a restructuring and will use Chapter 11 to increase liquidity. Was Easton ever in danger of foreclosure?Easton was never in danger of foreclosure. There is a misperception out there that special servicing must mean that foreclosure is in the cards, and thats just not the case. In fact, the restructuring agreements we entered into were a proactive move on our part to allow our team to be more creative and flexible to each tenants current situation and needs. This way, our restaurants, retailers, and service providers have a more long-term strategy to remain active while we all weather the COVID-19 storm together.

Are there other large developments that have done this?Absolutely. Developers working with trusted lending partners to reach creative solutions that are in the best interest of all parties is not a new phenomenon. Its been a common practice in the real estate industry for decades and several prominent malls and developers have taken similar approaches.

Lets end with some positives. What are some things Easton has going on that youre really happy about? How do you feel youre positioned for the holiday season?Twenty-eight years ago, we and Les Wexner set a course for this project that was going to be different from enclosed malls. There was to be a strong entertainment and lifestyle emphasis. We had hotels and apartments. It was something that was unheard-of back then. Whats happening here now shows us what a great decision that was. Heading into December, we are all hands-on-deck to cultivate the innovative, safe, community events that the Columbus market has come to know and love at Easton.

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5Qs for Adam Flatto on Easton Town Center's progress during the pandemic - Chain Store Age