COVER STORY, JANUARY 2005

MORE THAN A MALL
From a town square to a large urban lifestyle center, the Midwest’s newest retail projects showcase new ideas in development.
Lara Fuller

Many of the retail projects being developed these days are more than just the average strip center or regional mall. Developers and architects continue to get more and more creative — whether it’s with a unique location or distinguishing amenities. No matter what the plan, they are all designed with the consumer in mind. Heartland Real Estate Business recently took a closer look at several retail centers being developed in the Midwest to see what differentiates these projects from the rest.

THE SHOPS AT GATEWAY PARK

A large urban lifestyle development will break ground this spring in Detroit. The project is positioned for success, not only because of its size, but also its location. Within a 5-mile radius of The Shops at Gateway Park, which is located at the intersection of 8 Mile Road and Woodward Avenue, there are more than 500,000 people with a median age of 35 and an average household income of $54,000.

“There is a critical need for shopping in this area,” says Joseph Nederlander, development partner with The Shops at Gateway Park. “Currently, these consumers have no place to shop that is close to home. A high profile, attractive center such as The Shops at Gateway Park will draw in customers driving by, as well as those looking to pick up a few things or grab a coffee or a bite to eat.”

The Shops at Gateway Park is a 400,000-square-foot project that will feature a 99-seat children’s theater in the middle of the center. Celebrities, sports stars, retired teachers and parents will do readings of classical literature, plays and stories for children at the theater. The Shops at Gateway Park will also include more than 100 stores and restaurants and 1,400 parking spaces. Detroit-based J.L. Dumas Construction is the builder, and RLK is the project architect.

The 35-acre development will give local residents the chance to shop near their homes, without having to spend their money elsewhere. “Detroiters, and citizens of the surrounding communities, are very loyal customers,” Nederlander says. “They will now have the opportunity to spend where they live. A recent study by the University of Michigan Business School estimates that more than $3 billion in retail sales leave the city of Detroit on a yearly basis. The Shops at Gateway Park will be a major factor in starting to reduce that trend.”

FOUNTAIN SQUARE

In downtown Cincinnati, Baltimore-based Williams Jackson Ewing is currently involved in the rehabilitation of Fountain Square, the city’s main town square area. Fountain Square was first completed in 1871. The original square was actually a long, oval shaped esplanade, featuring the Tyler Davidson fountain as its centerpiece. Williams Jackson Ewing hopes to keep the feel of the original town square, but make the 9-block area a more pedestrian-friendly environment with open space and trees. This will, in turn, enhance the retail surrounding Fountain Square.

Baltimore-based Williams Jackson Ewing is currently rehabilitating downtown Cincinnati’s Fountain Square to enhance the area’s retail activity.

“Through innovative design and inventive leasing, the project will provide the people of Cincinnati with a civic and commercial experience that cannot be found elsewhere in the region,” says Lehr Jackson, principal with Williams Jackson Ewing. “The project will feature a collection of restaurants and shops that are unique and focused on the people of Cincinnati.”

The project will also include the redevelopment of two office towers, totaling 60,000 square feet. Fifth/Third Bank, owner of the two towers, retained Williams Jackson Ewing to guide its redevelopment efforts for the retail component of its company headquarters. “When complete, the project will feature a collection of unique, high-quality cafés, restaurants and specialty retailers, all fronting a new, lush, vibrant Fountain Square,” Jackson says.

Williams Jackson Ewing hopes the project will attract people from all over Cincinnati, as well as from southern Ohio and northern Kentucky. “The ability to capture the attention of local patrons will make this project a genuine amenity and landmark to the city,” Jackson says. “Every great city has a civic space where people can congregate and be involved in a myriad of experiences, be it shopping or eating, socializing or being entertained.”

THE SHOPPES AT COLLEGE HILLS

College Hills Mall in Normal, Illinois, originally opened in 1980 with two anchors. The mall had no food court and was relatively small in comparison to other centers. As years went by, the mall struggled to keep tenants and attract new business. Peoria, Illinois-based Cullinan Properties recently decided to bring new life to the mall by redeveloping it. The project began this past summer and is expected to be complete by this summer. Bloomington, Illinois-based Shive-Hattery Inc. is the project architect, and Morton, Illinois-based Core Construction is the project contractor.

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Cullinan Properties is redeveloping College Hills Mall in Normal, Illinois.

Cullinan Properties plans to keep the existing anchors in place at College Hills Mall and raze the interior of the center. When completed, the $30 million project is expected to be 430,000 square feet, not including the numerous outparcels located around the development. “In the de-malling of College Hills Mall, Von Maur, Target and Hobby Lobby each owned (or in the case of Hobby Lobby, leased from a private investor) their own land,” say Christopher West, president of construction services and Jeff Giebelhausen, president of development, both with Cullinan Properties. “Thus, the developer was purchasing only 22 acres. All existing small shops were demolished and a new roadway was created dissecting the site. This created excellent visibility and, in essence, street frontage, for the new retail.”

Cullinan Properties has been able to redevelop College Hills Mall into The Shoppes at College Hills because of the need for a new center in the area. The company also plans to bring a much-needed upscale restaurant to the property. “The market is exceptionally strong,” say West and Giebelhausen. “The combination of the strong market and exceptional location makes for a great foundation. The line-up of leading lifestyle retailers mixed with the existing anchors will help ensure the ultimate success of the center.”

SHOAL CREEK PLAZA AND THE SHOPPES AT SHOAL CREEK

After the success of Kansas City-based Block & Company’s Wilshire Plaza in Kansas City, Missouri, the company realized there was still room in the market for a new retail center. “When we built the 600,000-square-foot Wilshire Plaza, which is now fully leased, there was still a lot of retail and restaurant demand in the area,” says David Block, senior vice president with Block & Co. “It is a very strong growing market in both residential and commercial, so we decided to go ahead with the other developments.”

The other developments are two new shopping centers located adjacent to one another in the Northland area of Kansas City. The company will break ground on the 400,000-square-foot Shoal Creek Plaza, located at the southwest corner of Highway 152 and Flintlock Road, this spring. The Shoppes at Shoal Creek is a 130,000-square-foot center at the northwest corner of Highway 152 and Flintlock Road. The project, which will be anchored by a 30,000-square-foot Best Buy, is currently underway and will be completed in late summer or early fall 2005. Walton Construction is the builder of both projects.

Both centers hope to tap into the potential of the surrounding market. More than 59,000 people live within 5 miles of the projects and the average household income in that neighboring area is $65,755. “With the selective tenant mix and unique design, we believe these will be very successful and long-term shopping center developments,” says Block.

The developments, which total $50 million, also are different from what currently exists in the area. The pedestrian-friendly walkways, with many architectural elements and landscaping, are what makes these projects so unique, according to Block. “The projects will also bring many new and exciting retailers and restaurants to the community,” he says.



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