NEW APPROACH FOR PROSPECTS LEADS TO SURGE IN ACTIVITY AT CAPE CENTRE

CAPE GIRARDEAU -- The Cape Girardeau Centre development can be compared to a hibernating bear waking from a long winter slumber. The west side project, which has been laying dormant, is stirring once again but not due to the warm weather.

A recent change in ownership of the property and a subsequent new approach to prospective occupants has lead to a surge in activity there. Jackson businessman Gene Penzel has taken over the enterprise and is selling parcels of the 67 acre property, making construction plans, and contacting potential occupants.

The project had been in limbo since the last 17,000 square foot addition, which remains almost totally vacant, was built.

One indication of the past problems that plagued the development is that Wal-Mart may have built its new superstore on a 27 acre tract at Cape Centre. The discount retailer wanted an option to buy the land between Hartford's and Central Hardware. After being unable to strike an agreement with the developers, Wal-Mart bought land from the Drury interests west of Interstate 55 fronting Route K for the new store instead.

"Wal-Mart wanted to buy there," said Bill Stanfield of First Exchange Bank of Cape Girardeau. "But Krakover (St. Louisan Tom Krakover, formerly the general partner in Cape Centre Associates, L.P.) could not make arrangements for them to buy the 27 acres." First Exchange has been backing the project financially.

Until now, potential occupants at the development were faced with a third party leasing agent, various partnerships holding the leasing rights and leasehold improvements, and a third party, the Blattner family interests, which owned the land. Penzel and Stanfield said that potential new occupants were stymied by the number of parties involved and their inability to settle on contracts.

The Midland Group, a St. Louis company that formerly handled leasing for Cape Centre, would not comment on the record about the project. Ivan Irvin, who represented the development locally, did not comment either. He resigned two years ago.

"Midland and Eisenberg, another agent, would bring in potential sub leasees but none were taken," Stanfield said. "The project just sat there."

But late in December Penzel formed Cape Centre Development Corporation, bought the entire operation from Krakover and the Blattner interests, and refinanced the business loan. He is a member of the board of directors of the Jackson Exchange Bank and Trust.

"If things go right, we should have at least 50 percent of the undeveloped property sold or leased in the near future," he projected. He and Stanfield emphasize the property has plenty of potential. They estimate Cape Centre is presently worth $10 million plus.

Penzel plans to work directly with potential tenants, rather than working vicariously through third party leasing agents.

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"The project is out of the doldrums," Stanfield added. "The supermarket building (Storey's Food Giant) and eight acres just sold. And there are three contracts pending on 5.4, 6.75, and 10 acre lots."

Both would like to see a major general retailer located there as an anchor store.

St. Louisans Jack Davis and William Boudores have just purchased the eight acre tract and grocery building Stanfield referred to. They have also entered an agreement to buy another seven acres south of the store, on which the recent 17,000 square foot addition and the Hartford's building is located.

Penzel returns to the project after first being involved in its infancy. He was a limited partner in the original concept, Westborough Mall, started by George Staples of Charleston.

Four years ago St. Louisans John W. Hardie and Edward G. Throop established Cape Centre Associates, L.P., out of the C-4 Corporation of St. Louis. The two general partners purchased the leasing rights and leasehold improvements. Krakover subsequently bought their interests in Cape Centre Associates, L.P., Stanfield said.