In this respect General Growth looks like Citigroup, General Motors and any number of other zombie companies. It hasn't gotten a government bailout, but its strategy is the same as at companies that have: Play for time and pray for a miracle.
General Growth spokesman Jim Graham declined to confirm the company is talking to Cordish.
"Any discussions we're having with potential buyers are confidential," he said.
Almost any new owner would improve Harborplace. General Growth has neglected it as well as Owings Mills Mall, The Village of Cross Keys and some other metro Baltimore properties it owns. And that was before it ran into financial trouble.
All General Growth's festival marketplaces "could use some new thinking," Cordish said. "We're in a very good position, from a skills standpoint, to bring them into the 21st century."
For example, he said, Harborplace could use a larger "anchor" attraction. Phillips Seafood, the popular restaurant, is a big draw, he added, "but basically, the projects are anchorless."
Movies, theater and high-profile clubs are draws in other Cordish projects. One thing he probably wouldn't put there are slots. By law Baltimore's slots franchise must be south of M&T Bank Stadium, where the Ravens play.
As commercial real estate goes, the privately held Cordish Cos. are probably doing OK. But that's a relative measure. The parent owes zero debt. All mortgages are attached to specific properties in Houston, Kansas City, St. Louis, Atlantic City and elsewhere, so problems at one development won't contaminate the whole company.
Cordish projects focus on restaurants, movies, gambling and other entertainment, which may be to the 2000s recession what Judy Garland and Monopoly were in the 1930s - downturn-resistant cheap thrills.
But disappointing sales tax revenue at Cordish's Kansas City Power & Light District means taxpayers have to pick up some of the mortgage payments, reports The Kansas City Star. (New tenants will boost the take this year, Cordish officials told the paper.)
Also, the company has a pretty full dance card. Cordish is bidding to buy Atlantic City's Tropicana Casino and is developing Philly Live, an entertainment complex next to Philadelphia's three pro sports stadiums.
But he still could make a serious play for the General Growth assets. That's how recessions end. Liquid buyers get bargains from troubled sellers, remove excess supply and fix up the properties for the recovery.
It's starting to happen with homes. It needs to happen with malls and waterfront pavilions. But first General Growth and its creditors need to recognize reality.
