December 12, 2008 - RiverWalk Crossings, Jenks OK

RiverWalk developer Jerry Gordon has a check in hand for $41 million.

Phase 2 finally set to begin

Representatives of RiverWalk Crossing in Jenks have announced the impending construction of phase 2 multiple times since 2007.

Though complications kept pushing that day further and further back, Jeff Kaste, the Sperry Van Ness leasing agent for the retail center, said Thursday that earth work will "definitely" begin next week.

The difference this time? RiverWalk developer Jerry Gordon has a check in hand for $41 million.

"It's not tentative anymore; the loan has finally come through," Kaste said.

That $41 million loan will go toward five new retail buildings totaling 125,000 square feet to be built north of the existing 110,000 square feet. Lewis & Clark Outfitters, an upscale outdoors and sporting goods store, remains committed as the anchor tenant.

Additionally, Gordon has sold 10 acres to developers John and Stuart Price for $1.8 million to accommodate an apartment development of more than 200 units. Kaste said the Prices will work on their project independently from Gordon, but the look will be influenced by the retail center.

"They'll have similar architecture to the rest of RiverWalk — to keep it an even flow," Kaste said.

John Price said he will announce further details of the apartment development in the near future.

Gordon initially planned the 200 apartments as well as a 50-unit, six-story condominium building, but Kaste said the condos are no longer part of the plan.

The delays in phase 2 centered around money. Gordon entered into an agreement with American National Bank of Texas for a loan in February 2007, though the agreement was contingent on committing an anchor tenant.

Springdale, Ark.-based Lewis & Clark was secured as that anchor last April, but negotiations on the loan remained slow and grew even more complicated when the credit crisis hit months later, causing banks in general to become much more cautious with lending.

"We all thought we were going to get the loan in September, but things changed at the last minute," Kaste said.

The delays have also complicated the leasing process. Though the second phase was estimated to be 70 percent leased in September, it is now 45 percent leased, but an additional 30 percent has letters of intent, Kaste said.

"We're confident we can fill the second phase quickly, though the economy has changed a lot in the months after people signed the letters of intent," Kaste said.

Now that Terrell, Texas-based ANB has released the money, Kaste said RiverWalk is seeking mostly local and regional retailers and restaurants for the new phase.

The current phase of RiverWalk Crossing has a single vacancy due to the closure of Good Things, though Kaste said he is in negotiations with a clothing retailer to sign a lease as early as next week.

Original Story - Tulsa World