Proposed Movie Theater No Longer in Development; Land For Sale

JONESBORO, Ark. — Plans for the development of a new movie theater complex have been canceled, and a large section of land that was to be used for the complex is now up for sale in Jonesboro.

The 10.43-acre lot at 5650 E. Johnson Avenue in Jonesboro was being developed into a 16-screen movie theater complex but has been listed for sale for the original purchase price, according to Haag Brown Commercial Real Estate and Development.

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COVID was not kind to any of us and that can be especially true for developers who saw a dramatic increase in supply chain issues and construction costs.

– Haag Brown Commercial

Financially, COVID was especially hard on cinemas. According to stats from BoxOfficeMojo.com, in 2019, the movie industry’s domestic yearly box office gross was $3.9 billion. In 2020, as the pandemic hit, it dropped about 54% to $1.7 billion. The numbers got even worse in 2021, as domestic grosses dropped another 72.7% to $488 million. Since then, however, business has improved, in some regards. In 2022, the US box office total was $2.2 billion, and $2.9 billion in 2023.

But the problems with this proposed movie complex have predated COVID. In a K8 News article from May 2023, it was reported that a Memphis investor, Ambarish Keshani, had purchased the land in 2013. A neighbor said crews began construction in 2014 but stopped a few months later. Crews started again in 2019 but once again, stopped. At the time of the May 2023 report, construction was expected to resume “within the next couple of weeks.”

Josh Brown with Haag Brown Commercial spoke to NEA Report on Tuesday, Sept. 3. Brown said Keshani had been competing with Malco for years, and a non-compete agreement was reached between Malco and Keshani for the Jonesboro market. Brown said when the non-compete arrangement ended, Keshani came back to Jonesboro to start a new theater complex at 5650 E. Johnson Avenue.

Keshani also spoke to NEA Report on Tuesday and denied this detail. Although Keshani was guarded with his words, he said there has never been a non-compete clause with Malco, or anyone else, for Jonesboro. When pressed for more, he declined to elaborate further.

In 2019, as construction continued, a new trend was gaining momentum in cinemas, Brown said. Theaters would host half as many seats but with a more quality experience, including recliners and restaurants in the building. Even with less seating, revenue was going up and not down for these locations. So, Keshani paused his new projects and began to renovate all of his cinemas across the South. Keshani confirmed this to NEA Report.

Two-and-a-half years later, Keshani’s attention was back in Jonesboro – but Malco Jonesboro Studio Cinema had already opened in Greensborough Village. Keshani said the new Malco location did not impact his decision, adding that the two were being constructed at the same time. With more competition and the movie industry suffering declines in revenue, the project was no longer as attractive.

“He could never get inspired to come back and do that kind of investment,” Brown said.

When asked for specifics on why he decided to cancel plans for the project, Keshani declined to elaborate.

“It’s complicated, so I’d rather not make any comment,” Keshani said.

Courtesy Haag Brown