“Over the past year, St. Louis retail development has been strongly supported by Tax Increment Financing (TIF), which is driving new construction,” says Michael Hurwitz, vice president at Walpert Properties, Inc. Recent TIF projects include:

• Westfield Shoppingtown West County, a redeveloped enclosed mall anchored by Nordstrom (new retailer in the St. Louis market), Lord & Taylor, Galyan’s Trading Company, Famous Barr and JC Penney. The Westfield Group is the developer.

• Retail projects surrounding The Galleria Mall such as the 200,000-square-foot Brentwood Square anchored by REI, Orvis and Whole Foods Market, and the 180,000-square-foot Dierbergs Brentwood Pointe Shopping Center anchored by Dierbergs, DSW Shoe Warehouse and Ultimate Electronics, developed by Pace Properties, Inc.

• Kirkwood Commons, a 520,000-square-foot center anchored by Lowe’s.

• Chesterfield Commons, a 1 million-square-foot development anchored by Wal-Mart, Sam’s Club, Lowe’s, Target, Best Buy, Linens ‘N Things and a Wehrenberg 14-screen cinema, developed by THF Realty. This is the first major development in the Chesterfield Valley area, and it is attracting the value-oriented customers to this market.

• The 288,000-square-foot Old Towne Plaza in Ballwin, anchored by Lowe’s, Home Goods, Marshalls, Stein Mart and Ultimate Electronics, developed by Regency Centers.

• St. Louis Mills is a 1.2 million-square-foot destination mall that is being developed by The Mills Corp. Off 5th Saks Fifth Avenue Outlet and Off Broadway Shoes are anchor tenants that will occupy the enclosed mall; both retailers are new to the St. Louis market.
There are other new retail developments in the area such as Creve Coeur Pavilion, located at the intersection of Olive and Old Olive in Creve Coeur, Missouri, and developed by Centrum Partners. This is an in-fill site anchored by a 12-screen AMC Theatre, Macaroni Grill Restaurant, California Pizza Kitchen and the first Stir Crazy Restaurant in St. Louis. The area is heavily populated in the daytime with a significant amount of office and residential traffic.

St. John Crossings Shopping Center is a newly redeveloped retail center located in St. John, Missouri, on St. Charles Rock Road and Orlando Road. This is a 100,000-square-foot retail center anchored by Shop ‘n Save and developed by Walpert Properties, Inc. The densely populated residential area lacked a grocery store to service the population prior to this in-fill development.

Gravois Bluffs, located in Fenton and developed by G.J. Grewe, consists of 1.5 million square feet and is occupied by Shop ‘n Save, Lowe’s, Target, TJ Maxx, Linens ‘N Things, Michaels, Kohl’s, Supermarket of Shoes, OfficeMax, Party Universe, Pier 1 Imports, Petco, Ultimate Electronics, Garden Ridge and Wal-Mart.

Cross Keys Shopping Center is a redevelopment of a grocery-anchored shopping center in North County. The project will total 330,000 square feet and contain Schnucks Market, The Home Depot and Marshalls. The site is being redeveloped by The Sansone Group.
The Sansone Group also developed The Shoppes at Overland Trail, a 150,000-square-foot Target-anchored center located in Overland, Missouri.

Continued development will occur in St. Charles County, primarily focusing on the St. Peters, O’Fallon, Lake St. Louis and Wentzville markets. Dierbergs 94 Crossing is a 112,000-square-foot new development, anchored by Deal$-Nothing Over a Dollar, Petco and Stein Mart. Also in St. Peters, The Crossings at Mid Rivers is a new 254,000-square-foot retail center with Marshalls, Costco, Home Goods and Ultimate Electronics as tenants. Further west in St. Charles County, Schnucks Market is planning a new store near Highway 40 and Lake St. Louis Boulevard. The Wentzville area is booming with new retail development including a Wal-Mart anchored center as well as activity by Schnucks and The Home Depot. Many other national retailers are flocking to the area to fill small shop space.

Retail development will continue to be active in the Illinois counties of Madison and St. Clair. In Fairview Heights, Koman Properties, Inc. is developing Lincoln Place, a 168,580-square-foot retail center anchored by Kohls, Linens ‘N Things, Marshalls, Old Navy, Office Depot and Ultimate Electronics. Dierbergs will open its first grocery store in Illinois at Dierbergs Green Mount Crossing located in Shiloh and being developed by Capital Land. Target will anchor the center. In Edwardsville, The Promenade at Edwardsville is anchored by The Home Depot and Dierbergs and is being developed by The Sansone Group.

St. Charles County seems to be the most active area for new development. With nearly 34 percent gain in population over the past 10 years, St. Charles County is considered the fastest growing county in the state of Missouri, and has been for several years.

“Urban sprawl is the primary reason for the increase in housing, with a total of 4,252 new units started since January 1, 2002,” Hurwitz says. “With the boom in residential construction, St. Charles County retail development is certainly following suit.”

Retailers that are new to the St. Louis Market include Nordstrom, Galyan’s, Bass Pro Shops, Home Goods, A. J. Wright, Costco, Hobby Lobby Furniture, Stir Crazy Restaurant, The Cheesecake Factory, P.F. Chang’s China Bistro and Bahama Breeze.

Some of the major leases signed recently include Nordstrom, Lord & Taylor and Galyan’s at Westfield Shoppingtown West County; REI and Whole Food Markets at Olde Town Plaza; and Lowe’s, Kohl’s and Pier 1 Imports at Lincoln Place.

“The retail submarkets that will continue to develop will be O’Fallon, St. Peters and Wentzville,” Hurwitz says. Growth in these areas continues to rise exponentially, facilitated by new housing developments. Retail development will continue to flourish along major highways and high-traffic corridors to accommodate the booming residential population.

In-fill sites will continue to be developed, much like Creve Coeur Pavilion in Creve Coeur and Station Plaza in Kirkwood. Both sites were redeveloped into mixed-use projects. In the case of Creve Coeur Pavilion, the former Wehrenberg Theater site was developed into a mix of retail and office space. Kirkwood Station Plaza is being transformed from a Target store into apartments, single-family homes, townhomes and 40,000 square feet of street-level retail.

Michael S. Hurwitz is vice president of Walpert Properties, Inc.


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